P.E.I. gas prices fall slightly from record levels

The price of gas on P.E.I. dropped a little overnight, but diesel and heating oil remain at record highs Friday morning.

The minimum price at the pump for a litre of self-serve regular gasoline fell 2.3 cents to $1.84per litre. The diesel minimum remained at $2.09 and heating oil at just under $1.66.

Prices spiked over the last week as a result of Russia's invasion of Ukraine, and market fears over the impact on Russian exports of oil.

Prices fell across the region, but much more dramatically in New Brunswick. Gas prices were down four cents in Nova Scotia, to a minimum of $1.82in the Halifax area.

In New Brunswick, the maximum price for gas at the pump fell 14.7 cents to $1.70, and the diesel price dived 26.1 cents to $1.78. Heating oil was down 36.6 cents to $1.60.

World market prices peaked on Wednesday, and began to fall on speculation that OPEC might increase production.

Lower prices coming

On Thursday,CBCNewsreporter Robert Jones, who follows petroleum markets, said Islanders can expect larger decreases, but said they might have to wait until Saturday.

"You might remember last week prices were set on Friday and then reset on Saturday," Jones told CBCNews: Compass host Louise Martin.

"If they use a similar technique this week you could see almost no change tonight at midnight and then all the reductions happening on Saturday."

World market prices peaked on Wednesday, and began to fall on speculation that OPEC might increase production.

"On Wednesday all the air came out of that bubble," said Jones.

"There was a tweet from the ambassador to the United States from the United Arab Emirates suggesting that OPEC might agree to increase oil output to help with the Russian situation and that just seemed to take the air out of these petroleum markets."

Wholesale gasoline prices were down 13 to 14 cents a litre and diesel and heating oil were down 40 cents. These will be passed on to Maritimers, said Jones.

He cautioned prices will remain volatile as traders continue to follow events in the war in Ukraine. Without any other major events, however, he expects prices will continue to fall.