Quebec drivers are witnessing a slight dip in gas prices, with estimates suggesting a decrease of up to 13 cents per liter for regular gasoline and 20 cents for diesel as early as Wednesday. This anticipated reduction is attributed to recent statements from U.S. President Donald Trump.
Impact of Trump’s Remarks on Oil Prices
On Monday, President Trump announced a delay in military action against Iran’s energy sites, easing concerns and contributing to a 9% drop in Brent crude prices and an 8% decline in West Texas Intermediate (WTI). Dan McTeague, president of Canadians for Affordable Energy, predicts this will help lower gas prices in the coming days by an estimated 8 to 13 cents.
Current Gas Prices in Quebec
Despite this relief, drivers are still facing high prices at the pump. As of Monday morning, regular gasoline was priced at approximately $1.93 per liter in downtown Montreal. In a stark comparison, prices at the onset of tensions in Iran were around $1.52 per liter, marking a staggering increase of about 27% over three weeks.
Prices vary across the region:
- Montreal: $1.93 per liter
- Laval (Boulevard Saint-Martin): up to $1.96
- Longueuil (Greenfield Park and Saint-Hubert): as high as $1.95
- Ange-Gardien: $1.65 per liter at a Petro-Canada station
Retail Profit Margins on the Rise
Contrary to expectations, the ongoing conflict in the Middle East has led to increased profit margins for gas retailers in Quebec. Data from the Régie de l’énergie indicates that the profit margin for Montreal increased from 9 cents per liter on February 27 to 12.7 cents per liter by Monday, a rise of 41% in under a month. The Laval region showed a similar trend, with margins climbing from 8.2 cents to 12.6 cents during the same period.
Comparative Analysis of Regional Profit Margins
In contrast, regions like Lanaudière and Montérégie are also experiencing significant growth in profit margins, even if their profits are lower, averaging around 6.5 cents per liter.
| Region | February 27 Margin | March 23 Margin | Change (%) |
|---|---|---|---|
| Montreal | 9 ¢/L | 12.7 ¢/L | 41% |
| Laval | 8.2 ¢/L | 12.6 ¢/L | 53% |
| Lanaudière | {Data Pending} | {Data Pending} | 170% |
| Montérégie | {Data Pending} | {Data Pending} | 88% |
Understanding Regional Price Disparities
McTeague cautions against jumping to conclusions regarding profit margins across regions. Higher operational costs in larger cities like Montreal account for significant discrepancies. Certain gas stations may employ alternative strategies to offset losses, particularly in areas like Saguenay-Lac-Saint-Jean, where margins have recently dipped to negative territory.
