Canadians in the eastern half of the country are set to get the biggest price drop in gasoline since the financial crisis of 2009 as the result of “supply cuts and adjustments” by oil producers, the Canadian Association of Petroleum Producers said on Tuesday.
The average Canadian gasoline price will drop to $1.66 per litre in the current period between June 7 and July 10, the first such drop since 2014, CAPP said in a statement.
Prices were up to C$1.935 per litre at Canadian gasoline stations during the first week of the month, according to figures from GasBuddy.
A majority of the decrease could come in the next two weeks as producers replace fuels used for turnaround maintenance, the Calgary-based lobby group said.
Record refinery maintenance in Canada would be introduced to offset high prices faced by Canadian refiners, CAPP said.
“It may be clearer in the coming weeks for customers,” CAPP President Tim McMillan said in the statement.
CAPP said the price reduction was due to producers cutting output and higher prices at the pump coming in line with what producers expect to be a “more reasonable” global market for crude.
Alberta’s main oil exports fall almost entirely into the U.S. market.