Vision_2019_03_21

D O S S I E R NO MORE CHEAP GASOLINE FOR SALE

Avis de décès NÉCROLOGIE OBITUARY

GREGG CHAMBERLAIN gregg.chamberlain@eap.on.ca

The price of gasoline around Prescott- Russell and elsewhere in the country is going up again, and a Canadian expert on the global oil market and pricing does not expect it to be coming back down any time soon. “They’re all going up,” said Dan McTeague, one of the analysts for GasBuddy.com, an online market analysis and survey site for world oil and gasoline prices. McTeague, a former Ontario MPP for the Kitchener-Waterloo region, is regarded as one of Canada’s experts on the global oil market. He writes a regular blog for the Gas- Buddy website and serves as a consultant. The price of gasoline in Canada started dropping last summer. In Prescott-Russell it declined from a high average of 1.19 a litre down to an average low of 85 cents a litre in most communities in the two counties. In a few places the price at the pump could be as low as 82 cents. Similar drops in gasoline prices at the pumps happened all across Canada, with different values depending on the province and community. The low prices continued through the end of the year and early into the start of 2019, but then started to rise again towards the end of January and beginning of February.

M. JOSEPH “GILLES” PITRE

De Rockland, ON, est décédé le dimanche 10 mars 2019, à l’âge de 89 ans. Il était l’époux de Rita Brouillard, le fils de feu Ernest Pitre et de feu Irène Franche. Il laisse ses 3 fils: Shane, Christopher et Michael Pitre. Il laisse également ses deux frères et sa sœur: Jean-Pierre (Brenda), François (Nicole) et Rachel (feu Ken Dale) ainsi que plusieurs beaux-frères, belles-soeurs, neveux, nièces et ami(e)s. Il fut prédécédé par son frère, Guy (feu Madeleine). Les funérailles seront célébrées le samedi 23 mars 2019 à 11h, à la chapelle de la maison funéraire. La famille vous accueillera le samedi matin à compter de 10h à la : MAISON FUNÉRAIRE THÉO BRUNET & FILS 2419 rue Laurier, Rockland, Ont. • 613-446-4691 Condoléances et voir l’Hommage Photographique au www.maisonfunerairebrunet.ca

L’époque des bas prix de l’essence semble être révolue. Les prix à la pompe dans la région de Prescott-Russell se situaient en moyenne entre 85 et 89 cents le litre, selon l’endroit, depuis décembre dernier. Depuis janvier, ils ont atteint 98 cents, ou même plus d’un dollar le litre dans certaines parties des comtés, et un spécialiste des prix du pétrole et de l’essence prévoit qu’ils pourraient augmenter d’au moins 10 cents, plus tard dans l’année. —photo Gregg Chamberlain

McTeague cited two main reasons for the low gasoline prices last year, and the current rise starting this year. Both are due to supply and demand. “The (oil) markets last year had indicated there was plenty of supply and not enough demand,” McTeague said during a March 6 phone interview, adding that last fall all of the service stations in Canada were also switching over from their “summer blend” supplies to “winter blend” gasoline, which tends to be cheaper. Oil companies facing little demand for their large inventories started dropping their price per barrel for oil to the refineries. That contributed to lowering the cost of producing gasoline, which meant lower prices at the pumps. The switch to winter blend lowered the pump prices even more. Now, McTeague noted, the market de- mand for oil is rising and the stocks are in shorter supply so the price per barrel starts rising. That increases production costs for refin- eries to make gasoline, so that increases the wholesale supply price to gas stations, and that gets passed on to motorists at the pump.When gas stations switch over later in the season from winter blend to summer blend, that will also affect the price at the pumps. Premier’s cheap gas promise When he campaigned last year to become Ontario’s new Progressive Conservative pre- mier, Doug Ford promised to lower the price of gasoline in Ontario by 10 cents a litre. Ford said cancelling the previous Liberal govern- ment’s carbon tax cap-and-trade agreement with Québec and California would mean a five-cent drop in the pump price of gasoline in Ontario.

He speculated that the remaining five-cent drop would be possible through adjusting the provincial gasoline tax and other actions. When he became premier, Ford did cancel the cap-and-trade agreement for a five-cent cut in the pump price of gasoline. But there was never any announcement from Queens Park about any other actions meant to make good on the rest of his 10- cent reduction in Ontario’s gasoline prices. Meanwhile McTeague predicts the rising price of gasoline in Ontario in 2019 will continue. “It’s going to get more expensive,” he said, “by about 10 cents a litre.” One reason, McTeague noted, is that the new federal carbon tax legislation takes effect in April. Premier Ford has stated his opposition to the federal carbon tax but has not succeeded in getting a court injunction to stop it. But the main reason why gasoline prices will continue to rise, McTeague observed, is because all the international oil companies still do their pricing based on U.S. currency, and right now, “the U.S. economy is on fire” with the market demand driving up the price of crude oil and refined gasoline. The exchange rate between Canada and the U.S. still favours the American dollar, and that, McTeague said, also helps to drive up Canadian gasoline prices even more. In some communities, he added, local gasoline retailers will try to keep their pump prices from going too high too fast by cutting back on their own profit margins, but there is a limit to how much of that they can do. “So don’t blame the gas bar jockey,” McTeague said. “They have very little to say about the prices.”

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