Many Canadians are dealing with their future travels that may be as Canada Day approaches, including fuel prices for one of the busiest tourism industries of the year.
As the trade war continues, there is less travel across borders and many Canadians seem to have been traveling domestically this year, especially with more incentives.
The Canadian Power Pass is the latest federal government plan to promote tourism within the Canadian border this summer, which could mean more demanding fuel to certain destinations in the pass, such as camping and day trips to national parks and museums, which offer discounted prices for some in the pass.
With the national average price of conventional Canadian gasoline hovering around $1.40 per liter, some may wonder how consumer prices move forward in the coming days, especially after a rising day in the Middle East.
“No one has a crystal ball in this regard, and no one knows what to expect,” oil analyst Matt McClain said in Gasbuddy.
“The reality is now, we expect prices to fall.transparent
While this may be good news at the moment, the oil market is still volatile in amid geopolitical tensions – so things may change.
What determines the fees you pay?
The price consumers pay on the air pump is set according to many factors.
The most critical thing is usually the price of crude oil, which are refined into the prices we use for transportation and many other applications.
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Although a large amount of Canadian oil consumption comes from places like Alberta, prices are priced globally. The United States and the Middle East are the most common sources for Canadian oil imports to fill the supply gap.
Oil prices have soared in recent weeks when Iran and Israel exchange attacks, and we look forward to whether the United States will participate.
Shortly after the U.S. bombing of Iran’s nuclear sites, there are concerns over whether Iran will retaliate, and some speculation may even involve the Strait of Hormuz – a crucial route of transportation, especially for oil.
Iran did retaliate, but it did not affect oil transport.
Instead, Iran attacked the U.S. military base in Qatar, causing minimal damage and no casualties were reported. In addition, U.S. President Trump claims that Iran and Israel agree to the terms of the ceasefire.
The end result of these latest developments is that the sense of relief to the oil market and global economies may fade.
“As with any ongoing conflict, we have multiple routes and pathways and we may start walking or descending at any given moment,” McLean said.
“It all will depend on the ceasefire, and so far the ceasefire seems to have been in place.”
So for now, Canadians expect gas tanks to be filled in the next few days and weeks, which should lower prices, but largely depends on whether the ongoing conflict in the Middle East is prevailing, which remains a turbulent situation in the oil market.
While this may be good news for travel prospects, experts recommend higher budget prices if things change.
“Planning the worst hope and hope. The best thing people can do is have that budget and maybe have some extra money that you think you might need fuel, but you don't need it anymore.”
“Anyway, we are still seeing a drop in crude oil prices and wholesale gasoline prices – which is good news for motorists.“
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