Gas Prices Expected to Increase This Week

Monday, 16 September 2019 10:10

Gas prices could increase this week. The average price of gas right now in Oxford County is around $1.09 cents a litre.

OXFORD COUNTY - Gas prices are expected to go up this week across Canada.

Last week a drone attacked a major global oil production facility in Saudi Arabia. This wiped out nearly 5% of the global oil production. Gas prices are expected to increase this week because of the attack, However the increase is not as major as first expected and will also coincide with a switch to a winter blend, which will help keep the costs down a bit as well. What otherwise would have led to a 6 or 7 cent increase, could be much less because of the switch to the winter blend.

Head of Petroleum Analysis for GasBuddy Patrick DeHaan says gas prices have already started to increase today, with the full impact expected by Wednesday.

"Gas prices have begun to tick higher across Canada after a mostly stable week but all eyes now turn to Saudi Arabia after an attack that knocked out over 5% of global oil production and how oil prices are likely to jump as a result. While there is some good news that motorists should not expect a sudden and major uptick in gas prices, there may be a minor impact beginning mid-week and continuing until Saudi Arabia's state-owned oil company, Aramco, is able to restore all production. However, even after oil production levels return to normal, there is an undeniable factor that will now forever impact oil prices- and that is that Saudi Arabia's reliability and stability is no longer guaranteed, and this missile strike is evidence that perhaps one of the world's most stable oil producers may no longer be seen as stable as they were prior to this event. Motorists should stay tuned to GasBuddy for any further developments, but for now, we are not expecting this attack to lead to major price hikes. While the situation may change with Saudi Arabia, motorists are now able to fill up with cheaper winter gasoline and demand continues to seasonally weaken, perhaps softening the blow and impact of the attacks on gas prices."

The average price of gas right now in Oxford County is around $1.09 cents a litre. The cheapest gas according to gasbuddy.com right now is at the Circle K in Thamesford at $1.05 cents a litre.