Metro Vancouver drivers have seen some drop in gasoline prices with the recent plunge in crude oil prices, but more relief is predicted.

Crude oil’s dive slow to bring lower gas prices but more relief is forecast

Metro Vancouver gasoline prices predicted to drop to $1.25 or lower (with interactive chart)

The deep dive in crude oil prices in recent weeks has so far been slow to trickle down into lower gasoline prices.

But one petroleum industry expert predicts more relief from pain at the pumps is coming soon for Lower Mainland motorists.

“You guys are on the verge of a pretty sizable drop in the retail price there,” said Jason Parent, the Ontario-based vice-president of consulting for MJ Ervin and Associates.

He said the current average price of $1.30 per litre of regular gas in Metro Vancouver as of Friday – down from a midsummer plateau of around $1.42 – should continue to drop to $1.25 or lower.

Crude oil prices have fallen about 15 per cent from their July levels but the drop for retail gas has been barely eight per cent.

“We’ve seen some of that passed on at the pump but not quite all of it yet,” Parent said.

Crude oil makes up only about half of the cost of a litre of gas, but he said the sharp decline, plus the typical seasonal drop in gas prices as summer driving season ends, should translate into more savings for drivers.

“If you’ve got a sustained downward movement in crude prices – as we have – you will see that passed on for the most part, eventually.”

TransLink’s diesel bus fuel costs may also drop with lower crude oil prices.

Spokesperson Cheryl Ziola said it’s also possible lower gas prices will encourage more driving and result in TransLink collecting more fuel tax from the 17 cents a litre it levies, at least over the short term.

But cheaper gas can also cut into transit ridership if more passengers take their cars instead.

And Ziola cautioned trends of better fuel efficiency, slower growth in vehicle ownership and people driving less are forecast to continue to push down TransLink’s fuel tax revenue over the longer term.

Vancouver Historical Gas Price Charts Provided by GasBuddy.com

Just Posted

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

VIDEO: Fire crew mopping up workshop fire near Golden Ears Bridge

Structure fire at 208 and 102B sending plumes of black smoke into air above Walnut Grove

Two Giants picked to play against Russia

Two of Langley’s junior hockey players will be part of the six-game Canada Russia Series next month.

VIDEO: Tributes for the man known as the “Mormon Giant”

Langley champion professional wrestler passes away

Two Langley mayoral campaigns endorsed by anti-SOGI groups

Jack Froese unsure why he’s been singled out; SOGI not a municipal issue, says Peter Fassbender

Mellow opening to B.C.’s only legal pot shop

About five people lined up early for the opening of the BC Cannabis Store in Kamloops.

Jagmeet Singh says marijuana pardons are not enough

Trudeau government will streamline pardon process for Canadians convicted of simple possession of marijuana in the past

BC Ferries begins taking debit in two-month pilot project

Company is giving customers option to use Interac on two-month trial on select vessels

Caregivers banned from smoking, growing cannabis around children-in-care: MCFD

Ministry has limited cannabis use for caregivers, stating it may “pose a risk to children and youth.”

Cheaper strains sell out within minutes on online BC Cannabis Store

Province says new strains will become available in the coming months

Only 40% of B.C. car dealerships have electric cars available: report

Researchers found buyers frustrated at the lack of options

VIDEO: Millionaire Lottery returns to give back and win big

Since 1996, Millionaire Lottery has raised $52 million for the VGH+UBC Hospital Foundation

Test case challenges a politician’s right to block people from Twitter account

3 people say Watson infringed their constitutional right to freedom of expression by blocking them

Most Read