The electrification of transport does not rhyme with a considerable drop in oil prices in the long term, warns an expert at the Trottier Energy Institute at the Polytechnique.
• Read also: “A recession with a small “r”: what will be the economic challenges to follow in 2024?
In 2024, motorists should still expect fluctuations in the price of gasoline.
The oil production of OPEC+ countries is added to that of Canada and the United States, where we are seeing an increase in the volume produced.
“I expect prices to be relatively stable, that means fluctuations of 15, 20 cents per liter at the pump over the next year,” underlines Normand Mousseau.
In an interview on LCN, the expert points out that the only way to significantly reduce your gas bill is to consume less.
“The easy solution to paying less is to buy a car that consumes less and to decide where you live versus where you work,” he explains, adding that the population is faced with difficult choices.
TVA News
As Quebecers increasingly get their hands on electric cars, should we expect prices to drop in the years to come based on lower demand? Mr. Mousseau assures that motorists should not dream of a price below $1 per liter…
“The price of gasoline depends on production and demand. If prices fall, there are a certain number of producers […] which will be eliminated from the market, which will cause prices to rise,” he continues.
“We are going to experience yo-yos in the price of gasoline for quite some time to come. We dream that prices will fall.”
Normand Mousseau adds that carbon pricing will help maintain high gasoline prices.
*Watch the interview in the video above*