For the first time in six years, Alberta is seeing the cheapest gas prices across the country and analysts say that’s largely in part to the scrapped carbon tax.
Up until the end of May, Saskatchewan, Manitoba and even PEI, at times, maintained lower prices but a few factors have allowed Alberta to reclaim the title of cheapest prices.
According to gasbuddy.com, the average price of gas has dropped 4.9 cents per litre in the past week in Alberta and is now averaging 117.24 cents per litre.
In Calgary, the price sits at 108.59 cents per litre, which is down from last week’s 116.07 cents per litre.
Last week, Jason Kenney’s UCP government made good on its election promise to cancel the provincial carbon tax and senior petroleum analyst Dan McTeague credits the change for the sharp decline at the pumps in Alberta.
Meantime, ongoing trade tensions continue to shock the market causing the price of oil to fall seven per cent over the last week and McTeague says it may not be done just yet.
“The week ahead is almost certainly going to see further declines as reports President (Donald) Trump is once again using tariff threats, this time against Mexico, to achieve a halt in cross-border migration,” he said.
“The administration’s use of trade has many observers fearing a downward spiral on global economic outlook dragging equities and petroleum markets with them.”
McTeague predicts another five per cent drop per litre in Alberta for the first week of June before drivers can expect prices to increase slightly again.
