Vancouver gas prices drop to new low for 2023

Drivers in Vancouver woke up to the lowest gas prices so far in 2023 on Friday.

Several stations in Vancouver had prices sitting at 165.9 per litre while others were at 162.9 per litre. https://www.gasbuddy.com/charts

Gas analyst Dan McTeague says these prices haven’t been seen in the city since December 2022.

“The fluctuation takes place just before Christmas and then we start to see prices rally as they are doing everywhere else in North America. We got a bit of a break here,” said McTeague.

The impact of what McTeague calls a "Santa Claus rally" will likelty see prices rise between three and four cents per litre between now and Christmas Eve.

McTeague says the price of gasoline and diesel have fallen seven or eight cents a litre over the past week and a half, which he believes is in part to oil dropping to $68 per barrel earlier in the week.

“Much of that (is) not due to fundamentals of supply and demand, but perception and aspiration,” said McTeague.

“United States Federal Reserve Chair Jerome Powell on Wednesday said this would be the last of interest rate increases and likely see three or four decreases if everything went to plan.”

This now sets the stage for much higher prices, with production cut backs and rising global demand for oil, according to McTeague.

McTeague says, if weather remains mild, January prices should be remain stable but February and March could bring a significant swing in prices as the industry prepares for the summer.