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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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Canada’s Inflation Cooldown: A January Surprise

 

                                Financial industry observers had expected the inflation rate to stay steady at 2.4 per cent. 

Canada’s inflation rate eased more than expected in January, slipping to 2.3% and offering a welcome sign of cooling price pressures. Economists had anticipated the rate would hold steady at 2.4%, but softer core measures and sharply lower gasoline prices helped push inflation down. 

Gasoline prices were a major driver behind the slowdown, falling 16.7% year-over-year and easing the burden on consumers at the pump. Excluding gasoline, inflation rose 3.0%, indicating that while headline inflation is moderating, underlying price pressures remain present. 

Core inflation measures also softened, with CPI Trim and CPI Median both edging lower. This broad-based easing suggests that inflationary momentum is losing steam, potentially influencing future monetary policy decisions. 

Overall, January’s data paints a cautiously optimistic picture: inflation is cooling, but the path forward may remain uneven as various sectors adjust to shifting economic conditions.

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