Prince George continues to enjoy low prices at the pumps.
What’s on most people’s minds now is how long can this last? Well, UNBC Economics and International Studies Professor Paul Bowles says once a company shifts oil and gas prices, it’s hard for them to control the price after every other gas station has knocked down their numbers.
“These markets are notoriously volatile,” he says. “It’s virtually impossible to predict how long this will go on for, or where the resting place for the price of oil will be.”
Bowles explains that these prices are determined by supply and demand.
“There is concern about slowing growth in the world economy, particularly slowing growth in China, suggesting that these Chinese economy is slowing down,” he says. “As that slows down, the demand for oil in the global market will also slow down.”
Bowles points out that the low prices are due also to increase in supply, as OPEC’s cartel is forcing other countries to create their own sources of oil.
He says the politics behind the market activity is very interesting to watch.
“On the one hand, while I go to the gas station and fill up my car, I’m quite happy with the much lower prices,” he says. “But if I want to buy anything imported, that tends to go up in price because the Canadian dollar has gone down with the price of oil.”
Prince George had a good run with the lowest gas prices in the province for a couple weeks, but according to Gas Buddy, our Costco is now number two, at 91.9 (regular), behind Kamloops’ Costco at 90.9, but like Bowels says, these numbers will fluctuate for the foreseeable future.
Everywhere else in PG is enjoying slightly pricer gas at 98.9.
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