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Gas Is Still $1.81 a Litre: Why Pump Prices Won't Fall (and What to Do Before Winter)

  Canadians hoping for relief at the pump got bad news heading into this week: it isn't coming soon. The national average for regular gas was $1.81 a litre on Friday, according to Kalibrate, with provincial averages ranging from $1.557 in Alberta to $2.156 in Newfoundland, per GasBuddy. That's after a big policy move. On Friday the G7 announced plans to release 100 million barrels of oil right away, starting with diesel. Brent crude dipped on the news, then climbed back to about US$102 a barrel by the afternoon. Don't expect the release to show up at your station, because crude is only half the story. Crude oil explains only half your pump price Wood Mackenzie's Jim Mitchell says crude makes up 50 to 60 per cent of the retail price of gas. The rest is the cost of refining it, and that's where the squeeze is. Bank of Canada Governor Tiff Macklem pointed to damaged refining capacity worldwide in a Sept. 21 speech, noting that pump prices reflect crude roughly US$40 a ...
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Bank of Canada Poised for Significant Rate Cut Amid Economic Concerns

 

The Bank of Canada is on the verge of making a pivotal decision regarding an oversized rate cut, with many analysts predicting a reduction of 50 basis points. This anticipated move comes as the central bank grapples with falling inflation and a resilient Canadian economy.

Governor Tiff Macklem and his team have been navigating a complex economic landscape, with inflation dropping to 1.6%. This decline has sparked discussions about the necessity of a more substantial rate cut to stimulate economic growth and ensure inflation remains within the target range.

The decision, expected on October 23, will mark the fourth consecutive rate cut by the Bank of Canada. If the 50 basis point cut is implemented, it will be the first such significant reduction in over 15 years, excluding the pandemic era. This move aims to provide relief to Canadians struggling with debt and to bolster economic activity.

As the date approaches, market watchers and economists are closely monitoring the central bank’s actions, which could have far-reaching implications for the Canadian economy.


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