Towards an increase or a decrease in the price of gasoline?

Towards a rise or fall in the price of gasoline?

UPGRADE DAY

The trend that gas prices will take in the coming weeks, after returning to around $2 per litre, remains difficult to predict. 

“It's always hard to predict. Vacations in the United States are going to start, people are going to start traveling after the 4th of July (Independence Day in the United States), so it could put pressure on the price of gasoline and push it up,” he said. mentioned Professor Normand Mousseau, a specialist in energy issues and scientific director of the Trottier Energy Institute at Polytechnique Montréal.

For the moment, a small drop in the price of a barrel of oil, which is drop from around $120 to $110 on the international market, as well as a drop of 8 to 10 cents per liter in refinery margins, offer some respite to motorists, explained Mr. Mousseau in an interview with LCN Monday.

According to him, the price of a liter of gasoline could well rise soon, possibly around $2.10 per litre, but not up to the $2.20 or $2.25 per liter that motorists experienced this spring.< /p>

Refineries, not taxes

Furthermore, the professor does not believe that lowering taxes on gasoline, like Alberta or the Ontario have chosen to do so, represents a lasting solution.

“The refinery revenue, the margin they took, went from 25 cents a liter to about 55 cents a litre. We are talking about 30 cents per liter more, without the cost of production increasing for refineries,” he noted.

In his opinion, the government should opt for targeted programs in order to help poorer people who are struggling to fill up, but without doing without the financial windfall represented by taxes.

“To tell ourselves that we are going to deprive ourselves of income for services to citizens to offset the significant profits of the oil companies, the refiners, for me, it's a bit out of place. […] Why is it the government that has to give the margin, while the other players in the oil production chain fill their pockets, ”asked Professor Mousseau.

In any case, motorists should expect to continue to pay dearly for refueling. “We are counting on a reduction in the demand for gasoline over about 10 years with electric vehicles, so that we will not see significant investments to offset demand,” recalled the specialist.