January has shown incredibly low prices at the pumps, but according to experts, it's not going to last for long in 2019.
Dan McTeague is the Senior Petroleum Analyst with GasBuddy.com and they recently released their "2019 Fuel Outlook Guide" for the upcoming year. McTeague and his company are warning of "extreme volatility" at the pumps this year.
“Canadian drivers should expect a bumpy ride at the pumps in 2019 with markets fluctuating wildly given the uncertainty over the economy as a whole and energy markets being driven by a news headline sensitive stock market," McTeague said.
Of course, the oil and gas industry has been hit hard by the recession and prices in Canada have taken a hit. Now, with Alberta cutting back on its production of oil, and many countries around the world joining them, we could the price of oil slowly increase back to a more regular price we're accustomed to seeing.
Alberta is hoping that a slash in supply nationally and internationally will increase the demand for oil and hence prices will shoot up. It would be good news for the economy of the prairie provinces, but in turn, would hurt the wallets of drivers filling up their vehicles.
Along with that comes the implementing of the federal Carbon Tax, set to begin on April 1. McTeague thinks all these factors could contribute to an expensive year for purchasing fuel.
"The average hike of 5 cents per litre by April 1st, combined with a limping Loonie, will almost certainly force up the cost of filling your tank," he said.
GasBuddy.com correctly predicted 2018 would be the most expensive year since 2014. The average fuel price in 2018 was $1.242, compared to $1.263 in 2014. The site has predicted a 2019 year that will be comparable to 2018 and maybe even more expensive.
Prices as of January 9 sit at roughly 95.9 cents per litre in Estevan. Enjoy these prices for now, as it appears they won't last for long.