Recent statements by Donald Trump concerning potential actions against Iran are expected to influence gas prices significantly in Quebec. According to Dan McTeague, president of Canadians for Affordable Energy, drivers should prepare for fluctuations in gasoline costs in the coming days.
Gas Prices Predictions
As of Friday, McTeague forecasts a temporary drop in gas prices, expecting a reduction of 5 cents per liter. However, an increase of 6 to 7 cents is anticipated on Saturday. Initially, prices were projected to settle around $1.88 per liter in Montreal for the weekend.
Following Trump’s speech on Wednesday night, the price is now expected to be approximately $2.00 per liter from Saturday to Tuesday. McTeague noted that since the U.S. stock markets are closed for Easter on Friday, prices should remain stable throughout the weekend.
Diesel Prices on the Rise
Truck owners will not find relief, as diesel prices are set to increase by 19 cents on Saturday after a slight decrease the previous day. At the Shell station located at the intersection of Bélanger and Iberville streets in Montreal, the price has been capped at $1.999 to avoid crossing the psychological barrier of $2.00.
Psychological Pricing Strategies
Many gas stations in Montreal adjusted their prices to $1.999 after briefly hitting $2.00. This pricing strategy aims to keep gasoline just below the psychological threshold, according to McTeague. On Thursday morning, the average price at the pump in Montreal was $1.972, reflecting a profit margin of 6.8 cents.
- On Highway 20, drivers encountered lower prices in Saint-Liboire, where gasoline was available for $1.738 per liter.
- Motorists filling up at traditionally cheaper locations save approximately 25 cents per liter.
Global Market Reactions
Trump’s assertive tone has raised concerns for economists worldwide. As of Thursday afternoon, the price of WTI crude rose by 12.54%, reaching $111.27 per barrel, while Brent crude increased by 7.49%. Analysts predict that if hostilities continue, crude oil prices could rise between $130 and $140 per barrel.
Future Projections
With the transition to summer gasoline approaching, the costs at the pump are likely to increase. McTeague estimates that prices could reach between $2.10 and $2.15 per liter by mid-April, drawing closer to the record high of $2.17 per liter set in 2022.
This volatility in gas prices, influenced by both geopolitical events and seasonal changes, highlights the importance for consumers to stay informed about fuel costs.
