Updated on January 27, 2024
Get the Scoop on Anticipated 2024 Gas Price Hikes in Canada: Unveiling the Expected Increase Amount. With economic challenges and a drop in crude oil production, gas prices are projected to rise. Dive into the article for comprehensive insights into the anticipated increase in Gas Prices in Canada for 2024.
Anticipated Rise in Gas Prices Forecasted for Canada in 2024
Canada is a significant producer of gasoline, and the prices of gas and fuel experienced fluctuations in the country in 2023. There was a 16 percent decrease in prices during the third quarter of the previous year, attributed to a slowdown in demand and an oversupply of fuel and carbons in the global market.
According to fuel forecast energy trends, Gasoline prices are anticipated to remain subdued for the next few years. Gasoline production is closely tied to crude oil, and fluctuations in crude oil prices can impact costs at power stations. With a rapid increase in the crude margin observed during the winter, prices are expected to rise in 2024. Dive into the article for more insights on the anticipated increase in Gas Prices in Canada.
Here’s The Increased Amount Of Gas
Gasoline prices are heavily reliant on the demand for fuel. During the winter, fuels and crude oil were widely used in provinces like Ontario in Canada. These provinces experienced an uptick in carbon fuels and heating oils during the last quarter of the previous year.
As summer approaches, vacations and holidays are on the horizon, prompting citizens to travel to various regions. With the surge in demand for fuels and gas, prices are expected to rise. Fuel prices are influenced by swaps, and while winter swaps saw a decrease in gasoline prices, including a cheaper price for butane, the summer swap is anticipated to bring an increase in gasoline prices, with carbon fuels potentially available at more affordable rates.
History Of Gas Prices In Canada
In 2022, gasoline prices experienced an increase attributed to geographical factors and economic challenges. Prices reached their peak at $214.6 per cent. Inflationary pressures and the conflict between Russia and Ukraine contributed to a significant spike in fuel prices during 2022.
Since then, prices have normalized compared to the peak in 2022, although the margin remains higher. Gasoline prices in the provinces of Canada averaged 0.99 USD per litre from 1992 to 2023. The highest recorded price was 1.59 USD per litre in 2022.
The lowest price, with an index of 0.41 USD per litre, was recorded in 1998. In March 2022, the Federal Reserve increased funds for these fuels from 0 per cent to 5.25 per cent.
The graph illustrates the statistical trends in gas price increases over the months of the previous year.
Market Trend Of Oil And Gas In Canada
In 2024, prices were relatively low at the beginning of the new year due to the heavy winter, reaching 139.9 cents per litre during this month. However, an increase in gasoline prices is anticipated in mid-summer.
Over the next three months, Canadians may witness a decrease in fuel and gasoline prices, although variations could occur in the northern region of Canada. Additional support from provinces for fuel and gasoline might lead to price decreases in the northern part of the country.
In 2021, Canada produced over 4.7 million barrels of crude oil, and the production graph is projected to remain steady in the upcoming years. The consistent production margin in 2022 was around 6 million barrels.
However, authorities expressed disappointment with the decline in crude oil production in 2023. This decline has contributed to an increase in prices for the upcoming year. If the country manages to increase crude oil production in the coming months, prices might see a decline in the third quarter of this year.
Fact Checks About Gas Prices In Canada
This year, crude oil production is anticipated to increase to almost 1 million barrels daily. Despite a lower margin of gas production, the demand has not decreased. The country may witness minor expansion outputs in the upcoming months.
The benchmark gasoline price in Alberta is projected to average $2.35, significantly lower than the previous year’s amount of $5.75. The majority of funding in the province comes from the production of fuels and gas.