‘Hope they go down further’: Less pain at the pump but some still think prices are too high

Gas prices in Winnipeg are down 20 cents compared to last month, but it may take a while for prices to return to normal. Jeff Keele has more.

There is a little bit of relief for drivers at the pump lately, as gas prices are starting to come down.

“They’re not too bad right now,” said one Winnipeg driver. “They’re getting better, hope they go down further.”

According to GasBuddy.com, the average price in Winnipeg is around $1.60 per litre, 20 cents lower than last month. There were some stations Monday advertising prices at $1.479 per litre.

“Over here a dollar forty-seven, so it’s a little bit of a relief. We can buy some more groceries now,” said another driver.

This comes as the US and Iran say they’ve reached a peace deal that includes reopening the Strait of Hormuz, where a lot of oil is shipped.

University of Winnipeg professor of economics Phil Cyrenne said the oil producers, refineries, and players at the retail stage believe oil prices will be going down, which means gas prices will also drop.

“Any good news is good for gas prices,” said Cyrenne. “Any peace deals are good for gas prices.”

But the prices are still well above last year’s average in Winnipeg of around $1.25 per litre. While some drivers are pleased to see prices down, others say they are still too high.

“I still think they should come down a little more for those that have retired and work from pay day to pay day,” another driver said.

One energy expert cautions a return to normal prices, pre-war, could take a long time. Dan McTeague, president of Canadians for Affordable Energy, said oil fields in the region have suffered damage or were shut down, vessels are backed up, and reserves have been used up.

“These things will not be measured in days or weeks but months, perhaps even years, where we’re going to continue to see elevated prices for oil,” said McTeague. “I think it’s probably as low as it’s going to get at $80 a barrel.”