Calgarians expected to see short-lived relief in gas prices Wednesday

There is some potential relief on the horizon after gas prices in Calgary spiked once again on Tuesday.

According to GasBuddy.com, the average price to fill up with regular fuel in the city is $1.756/litre as of Tuesday afternoon.

Dan McTeague, president of Canadians for Affordable Energy, says Calgarians can expect a 10 cent drop in the wholesale price of gas on Wednesday. 

“This is due to the comments made by President Trump that he had been in negotiations with Iranian officials and that apparently they have something of a deal,” McTeague said.

The reprieve will be short-lived, with McTeague saying prices are expected to jump by about 7 cents on Thursday.

“Markets aren’t convinced that is in fact the case, and the timeline may not even work, so as a result, it means that what goes down must come up,” he says.

The surge in prices stems from global unrest due to the war in the Middle East and the subsequent blocking of tanker traffic through the Strait of Hormuz, where roughly 20 to 25 per cent of the world’s oil supply passes through on a daily basis.

Oil and gas output has also been curbed as a result of the war, which has killed more than 4,200 people across the region.

The CityNews gas prices page tells you the average cost in Calgary and the lowest price near you, check in here.

Premier speaking in U.S. on energy

Amidst ongoing volatility in the oil and gas sector, Alberta Premier Danielle Smith is in Houston this week with top global oil and gas executives for CERAWeek.

She will speak Tuesday about energy security and to promote Alberta.

Bloomberg reports that at that same conference, vice chair of S & P Global, Dan Yergin, said a “security premium” is now built into oil prices and they are unlikely to return to previous levels.

Smith has also said on multiple occasions the province won’t be suspending the 13 cent a litre fuel tax.

With files from Edward Djan