Gasoline prices dip below 80 a litre at some Calgary pumps

Gas prices at the pump are getting low with a few stationsin Calgary selling fuel at just under 80 cents/litre.

By Saturday afternoon, prices could drop down toward 70 cents/litre, analystDan McTeaguesays.

These prices haven't been seen in Calgary since February 2016, says McTeague, president ofCanadians for Affordable Energy, an advocacy group. He was formerly an analyst with GasBuddy, which tracks prices at the pump.

McTeaguesays he expects prices may rebound by July in a "rather dramatic snapback."

"It will be brutal but for now, we have to accept these prices as they are," McTeague told the Calgary Eyeopeneron Thursday. "They're great for consumers but not so great for the economy as a whole."

Prices have dropped in the past week as the global economy struggles with massive stock sell-offs related to coronavirus outbreak reactions, and an ongoing crude price war.

As of Thursday morning, three Calgary Costco stations wereselling gas for 79.9 the only ones reporting prices below 80 cents/litre, according to GasBuddy's price tracker.

Most prices in central Calgary were hovering just below 85 cents, the tracker showed.

Driver NayyerAzamsays he's looking forward to gas below 80 cents. He was filling up at 84.9 on Thursday morning at the Petro-Canada station on 14th Street N.W. at Kensington Road.

"We're still happy, but if it goes down more, it makes us more happy as well," he said.

At the same time, Azam says he's worried about the potential layoffs and economic downsides to both the price of oil and the coronavirus outbreak, which have resulted in the cancellation of events and decreased revenues for the tourism and entertainment industries.

"It's a ripple effect," he said.

Prices are expected to drop further by the weekend, McTeague says.

"We're looking at a five-cent decrease come Saturday, so we could well see prices here in Calgary touch 70 cents a litre," he said.

Listen to McTeague's full interview on gas prices here:

The weakened loonie has also affected the price at the pumps, McTeaguesaid.

The average price for GasBuddy's Division 6, which stretches from High River to Rocky Mountain House, that includes Calgary, Airdrie and Olds but excludes Red Deer, remains at 89.7 cents/litre.

Further north, in Divsion 11 around Edmonton, the average is lower at 83.9, GasBuddy shows.Edmonton typically sees slightly cheaper gas than Calgary, McTeague says, as the city is closer to the source.

Gas prices in Alberta remain among the lowest inCanada.