Local gas prices have dropped since earlier this month when the average price of regular gasoline in Steinbach was at 138.9 cents per litre. According to GasBuddy.com (on Saturday evening), gas prices in Steinbach range from 133.9 to 135.9 cents per litre.
The provincial average sits at about 133.8 cents per litre, down slightly from last week but up a couple of cents from last month. Patrick De Haan, petroleum analyst at GasBuddy, notes that the removal of the federal carbon tax earlier this year has helped keep prices lower than last year by about $0.14 a litre.
He explains, “Oil prices have really fallen quite a bit here over the course of the year, of course, subject to a lot of uncertainty brought on by a shift in the White House, of course, a lot of shifts in trade policy. Oil prices today [are] about $62.00 a barrel,” he explained.
Global events have also played a role. Increased production from OPEC+, trade uncertainties, and a slowing economy have all contributed to keeping prices relatively low. De Haan noted that potential peace talks between Russia and Ukraine could influence future supply, as easing sanctions might allow Russia to produce more oil.
Diesel prices through the seasons
Diesel prices have experienced some upward pressure. Russia’s heavy oil production and related geopolitical tensions have affected the market, while seasonal demand for diesel and heating oil tends to rise in the cooler months.
As De Haan explained, “As we get into the cooler weather, diesel heating oil is essentially the same as diesel. We generally see demand… going up and that pushes prices higher.”
How EVs are affecting things
Electric vehicles are slowly starting to affect fuel demand, but progress is gradual. De Haan noted that while more Canadians are adopting EVs, many continue to drive larger, less fuel-efficient vehicles.
“So while there has been a rise in the number of EVs, there's also been a rise in the amount of bigger vehicles on the road that are less fuel efficient, which is partially offsetting the improvements from moving over to EV,” he said.
He says that despite global uncertainties, drivers can expect relatively stable gas prices heading into the fall and winter months.