GTA sees significant drop in gas prices overnight
Posted March 29, 2022 1:00 pm.
Last Updated March 30, 2022 9:17 am.
GTA drivers are waking up on Wednesday to some much needed relief at the pumps.
Gas prices fell nine cents at midnight to $1.689 per litre at most GTA stations and another one cent drop is expected on Thursday.
The falling cost of gas reflects a dramatic drop in oil prices on Monday and Tuesday this week. The price of crude oil fell seven per cent Monday and prices are down another five per cent as of Tuesday morning.
Oil prices have fallen to $106 per barrel after peaking at $115 per barrel last week. Despite the recent drop the price of oil is still up 40 per cent this year.
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The recent drop in price is tied to pandemic issues in China and progress in peace talks between Russia and Ukraine.
Lockdowns in China have given way to concerns of the country’s economic growth prospects. China’s largest city Shanghai entered lockdown this week to help combat a new surge in COVID-19 cases.
China is the largest importing nation in the world for crude oil.
Talks of a ceasefire between Ukraine and Russia is also a positive for reducing the risk assessment on energy trade. The two sides held talks in Turkey on Tuesday and Russia’s military said it would cut back operations near Ukraine’s capital and a northern city.
Gas prices reached record highs across Canada earlier this month, nearly reaching $1.90 per litre in the GTA.
With files from CityNews business reporter Mike Eppel
