It has been and up and down week in terms of the price at the gas pumps.
Following an 8 cent per litre increase on Friday, gasoline prices are now expected to drop by 7 cents per litre overnight.
That will put the price at $1.68 per litre at most local stations.
Gas prices reached a five-month low last week, falling under $1.60/litre for the first time since February. Prices peaked at a record $2.14/litre in June.
Speaking to Bloomberg last week, Roger McKnight, chief petroleum analyst at En-Pro International warned the relatively lower gas prices of the last week wouldn’t last long, saying the drop in price was due to a slowed demand and could be a sign of trouble for the economy in the months ahead.
“Why has demand fallen off? The inflation situation has made things more expensive for consumers,” McKnight says. “Then we have the shadow of a recession looming behind us.”
He says the threat of a downturn in the economy has caused many families to hold off on summer vacation plans and trips where they would normally be driving longer distances.
“Thing are starting to close in a bit, it’s not a very good omen as we head into the fall.”
