Gas prices drop in Fort St. John

FORT ST. JOHN, B.C. — Fort St. John gas prices have dropped and may stay down for a while due to the time of year.

Dan McTeague, president of Canadians for Affordable Energy, says the rest of B.C. has seen prices drop significantly since about the beginning of November when oil was trading at $84 to $85 a barrel and is now at $70 to $73 a barrel.

“There is no real pressure on gas prices right now because, this time of year, demand throughout much of North America is very slow,” McTeague said.

“And refineries have had no issues producing it. Their emphases really now this time of year is diesel.”

McTeague says a price drop at this time of year is no surprise, as it happened last year, too.

“It is just before Christmas— A little bit of a Christmas gift,” McTeague added.

For a gas price drop to happen in Fort St. John, wholesale prices must drop in Edmonton before it hits here.

“The best news about that is it’s down, it’s likely to stay down, I don’t see it going back up anytime soon,” McTeague said.

“There’s nothing internationally or disturbances with refineries that would cause the price to go back up.”

In Fort St. John, residents often compare prices to Alberta, but McTeague says that may not last much longer, as the neighbouring province is bringing back the gas tax in the new year.

“You’re going to find the prices will be up ten cents a litre across the board in much of Alberta,” McTeague said.

The second reason B.C. typically has higher fuel prices is the Renewable & Low Carbon Fuel Requirements Regulation, which adds approximately 17 cents a litre.

“Just between those two alone, what governments do or don’t do, makes a world of difference, which is why it’s more competitive,” McTeague said.

“Forget transportation costs and distances, they have the refineries in Edmonton, but beyond that, the two big taxes make up a significant part of the difference.”

According to GasBuddy, regular gas prices in Fort St. John range from $1.38 per litre to $1.59 per litre.