Gas prices could continue going up in the coming weeks despite G7 countries vowing to release millions of barrels of oil and fuel products.
“At this time of year, we usually see gasoline dip below its summer value price,” Dan McTeague, president of the advocacy group Canadians for Affordable Energy, told CTV’s Your Morning on Monday.
“Not just because of the switchover from summer to winter gasoline, but demand for gasoline tends to fall. Not this time.”
McTeague predicts gas prices could continue increasing by 10 cents a litre between now and Thanksgiving on Oct. 12 before going up as much as 10 to 15 cents a litre by the third week of October.
“We have never seen such a loss or such a concern about the lag and inability to meet world demand,” McTeague said. “That’s one of the reasons why I think prices have a tendency to look at going much higher than we’re seeing today.”
With conflicts in the Middle East and between Ukraine and Russia contributing to surging fuel pries around the world, Group of Seven nations announced on Friday that they would release 100 million barrels of oil and fuel products in the coming weeks from their emergency reserves. The G7 countries are Canada, France, Germany, Italy, Japan, the U.K. and the U.S., plus European Union representation.
McTeague expects any price relief at the pumps from the 100 million barrel release to be short-lived.
“Well, G7 uses a total amount – including the United States, being more than half of that – about 32 million barrels a day,” he said.
“That’s three days. It’s going to help a little bit … but I don’t think it’s going to solve the long-term problem. I think markets are going to restore their upward push on diesel and to lesser extent gasoline prices.”
With files from The Associated Press
