Petroleum analyst predicts 12 per cent per liter drop in gas prices from July 7 – Kingston | Globalnews.ca

Gas prices in the region have been sitting at around $1.85 a liter since Canada Day weekend, when the province’s gas tax cuts came into play.

According to a gas price analyst, the fuel price is likely to fall further on Thursday.

Roger McKnight, chief petroleum analyst at N-Progas, said he anticipates a drop of up to 12 cents.

He’s predicting it will drop at 12:01 on Thursday, which comes as welcome news to some motorists.

“That is good news. Good news for everyone. I hope it goes further than that,” said Philippe Calves as he gasped his vehicle on Wednesday.

Another pumped-over, Emily Cantal shares Philippe’s sentiment.

“This time last year it cost about $60 to fill my tank when the gas light was on and now it’s closer to $130 to fill the exact same gas tank so I can get it wherever I’ll save money,” she said.

However, for others like cab drivers, whose income is affected by gas prices, this is still not enough.

“Yeah, it slows the bleed but when it goes down to two bucks, what’s 12 cents?” Said Terry Kelly, a taxi driver for a decade.

McKnight says the drop in prices is not because supply has increased.

“We have sluggish demand, which means the economy may start out slow, they may be listening to the move and winning this situation,” he said.

Contributing to the shortfall, according to McKnight, is speculation and bearish concerns in the markets.

“Wall Street says, ‘Okay, that will reduce demand for crude gasoline and diesel,’ so prices come down,” he said.

That mixed bag of information may provide some financial relief in the short term, but there are serious concerns of a potential recession on the horizon in the long term.