Alimentation Couche-Tard misses on top and bottom lines in Q2
Gas prices have been dropping in Canada and one analyst says he expects the trend to continue into the near future.
“I'm thinking we're going see about a two week lull where we're going to hover at these prices,” Paul Pasco, principal consultant at Kalibrate, said in an interview Monday.
“We have seen a nice recent decline. I don't believe that we're going to see any dramatic increases coming.”
As of Tuesday, national gas prices hovered at $1.498 per litre, according to figures posted by the Canadian Automobile Association. That’s down from an average national price of $1.508 per litre on Monday, $1.563 a week ago and $1.738 last month.
One major factor behind the price drop is that consumers have already changed their driving habits in response to sustained high gas costs, Pasco said. That has driven prices lower as demand for fuel drops, and Pasco said driver habits have likely become ingrained for the time being.
“The consumer is not rapidly going to change patterns at this point,” he said. “Luckily for us, as consumers have changed, we're starting to gain some headway on rebuilding fuel inventories that we've been draining fairly steadily for the last six to eight months.”
Pasco said he doesn’t anticipate big price increases again until January, when new European Union restrictions are expected on Russian refined fuels.
With no disruptions predicted in the North American refining market and no major surge in fuel demand on the horizon, Pasco said he anticipates prices in Canada and the U.S. to remain steady for the next few months.