The sudden drop in gas prices is welcome news for Brandon drivers, but what is causing it?
Patrick De Haan, head of petroleum analysis at GasBuddy, said several factors are driving Brandon’s average gas prices to 153.9 cents a litre as of Wednesday.
“We’ve seen a reversal of some of the refining issues that had been in the Great Lakes region, lowering prices. We have also seen the price of oil drop recently.”
Oil prices have fallen to their lowest levels since the summer, with De Haan pointing to decreased tensions and increased product flow as contributing factors.
“There is a bit of optimism that there may be a deal between the U.S. and Iran. Oil has been flowing through the strait at an increased rate as well.”
As oil prices decrease, gas stations begin adjusting prices to reflect the lower costs of purchasing refined fuel from oil.
With these factors in play, De Haan said drivers can expect better prices at the pump over the coming weeks.
“If you have a full tank of gas, I wouldn’t be rushing to the pumps anytime soon.”
De Haan also attributed part of the decline to the seasonal shift into winter, as drivers spend less time on the road and demand for gas decreases.
However, while drivers can expect some relief in the immediate future, prices could change depending on geopolitical tensions.
“We have all seen the tension with Russia, Ukraine, the U.S. and Iran that have blocked exports and driven prices.”
With the U.S. midterm election seeing Democrats take over Congress, De Haan said it is possible the U.S. could push Russia to end its war and find a resolution with Iran.
“If that happened, only then would we see meaningful changes in gas prices.”
