Gas Prices Drop Below A Buck After Terror Scare

Drivers heading home in the G.T.A. were blinking twice Thursday night as gas prices dropped to around 97 or 96 cents at stations across the city. And they were even lower – in some places down to 93 cents – by Friday morning.

It’s the one of the biggest price drops of the year and it all happened because of the arrest of 24 suspects charged with plotting to blow up 10 American-bound planes.

Investors speculated that the threat might lead to fewer people flying and fewer jets in the air. That would save fuel, cause a drop in consumer confidence and reduce the demand for oil. The result – gas prices under a dollar a litre for the first time in months.

“It’s far too early to make a definitive call on this,” warns Lawrence Eagles of the International Energy Agency. He believes the psychological impact of the plot has yet to be fully realized and “if it does cause a reduction in air travel, it’ll impact” jet fuel, “which is the tightest part of the product spectrum.”

The revelations from the U.K. came on the same day that British Petroleum announced it might not have to completely shut off all oil from Alaska, as it seeks to clean up 16 miles of corrosion on a major pipeline. That eased some of the pressure on the fuel, another reason for the sudden drop.

Motorists don’t care about the reasons. They’re filling up while they can.

“I didn’t really need it that badly right now but I just saw the price and I thought I’d better stop and get some, fill up, right?” comments Keith Miller.

“I think it was $1.22 last time I filled up, which was pretty gross, to be honest,” chuckles Peter Evans. “It was about seven bucks to fill this car up and it’s never been like that.”

But it likely won’t last long. Prices that had plummeted on Thursday recovered on Friday and a barrel of crude went back up more than $2 when the markets reopened, hovering around the $74-75 mark.   

And there are reasons to think it could go higher soon – supply disruptions from civil unrest in Nigeria, the U.N. planning sanctions against Iran and of course the continuing war between Israel and Hezbollah.

Only in the current climate could 90+ cents a litre actually seem cheap. But if you do see it that low, catch it while it lasts. Reports from cottage country indicate drivers there are paying as much as $1.11 per litre. In fact, it looks like the further north you go, the more you’ll have to shell out.

In Barrie Friday, prices were hovering around the $1.06 a litre mark, while up in Bracebridge and Haliburton, they were well over $1.10.

“We definitely should have filled up in Toronto,” admitted driver Nikki Tapscott.

“I’ve learned my lesson,” granted another driver. “Next time I will fill up in Toronto before I leave.”

Which just proves that the oil business tends to run in the opposite direction from the law of gravity – what goes down, must inevitably come up.

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