- Consumers in New Brunswick will likely only have one day on Wednesday to save money by timing up and downswings in the province’s regulated fuel prices.
- Any change in trading greater than six cents must be applied by midnight the next day to the current maximum price in New Brunswick.
Consumers in New Brunswick who want to save money by timing up and downswings in the province’s regulated fuel prices will likely only have one day on Wednesday.
Gas, diesel, and heating oil prices fell sharply Monday due to trading in New York’s petroleum markets.
According to New Brunswick petroleum pricing rules, that decrease must be passed on to customers at local pumps on Wednesday.
However, on Thursday, New Brunswick’s normal formula kicks in and based on trading in New York throughout the week, prices appear poised to return to current levels, if not higher.
According to Reuters, a spike in COVID-19 cases in China prompted a lockdown in Shanghai’s financial district and sent oil and petroleum markets worldwide into a tailspin on Monday.
Fears that Shanghai’s problems would set off a chain reaction in other major Chinese cities, slowing the economy and driving down energy prices.
According to Reuters, “the fear that the lockdowns will spread has resulted in a further market decline.” In Houston, Andrew Lipow of Lipow Oil Associates said, “The fear that the lockdowns will spread has resulted in a further market decline.”
Trading in gasoline fell between seven and eight cents per liter in New York spot markets, where New Brunswick prices originate, while diesel fell at least nine cents per liter.
Any change in trading greater than six cents must be applied to the current maximum price in New Brunswick by midnight the next day.
This should result in the lowest gasoline prices in New Brunswick in nearly four weeks at 12:01 Wednesday morning, but only for 24 hours.
As Russia’s war on Ukraine and ongoing COVID problems drive petroleum markets up and down rapidly, Wednesday’s fall will be the eighth special cost setting in New Brunswick in March.
Gas prices in New Brunswick have jumped more than eight cents four times overnight and will have fallen that much or even more 3 times by Wednesday, making it tougher for budget-conscious motorists to time their purchases.
An increase in carbon charges is set to take effect on April 1st, adding another wrinkle to the picture this week. On Friday, gasoline prices will increase by 2.2 cents.
Source: CBC News
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