When the Provincial Carbon Tax started on January 1st, you may have thought you'd seen the end of low gas prices.

In the past week however, fuel prices in Airdrie have been below a dollar a litre and sometimes less than 90 cents. Dan McTeague, Senior Petroleum Analyst with GasBuddy, says this is due to demand.

"What we've seen however is a good supply, a healthy supply from refineries in US and Canada, remain surprisingly robust and healthy. They traditionally break down or higher demand down there puts a lot of strain on prices."

McTeague says there's another factor playing into these low prices: Cutthroat competition.

"Retailers do need to charge anywhere from 6 to 12 cents a litre, depending on their market, in order to be able to pay for things like electricity, their overhead costs."

Although the prices are a treat right now, McTeague says they need to go up to close to a dollar. That could happen by Monday (March 27th) at the latest.

 

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