Marked difference in the price at the pump between Gatineau and Ottawa

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Émarked difference in pump prices between Gatineau and Ottawa

On Saturday, the price in Ottawa was posted at $1.58 per liter per location, compared to $1.87 in Gatineau (archives).

A gap in the price of gasoline can be seen between the stations in Gatineau and those in Ottawa.

In Ottawa, for example, gasoline retailed on Saturday at around $1.58 per liter in certain stations. In Gatineau, the price of a liter of gasoline hovered around $1.87 per location. A difference of more than 25 cents per litre.

Jean-Thomas Bernard, economist and visiting professor in the Department of Economics at the University of Ottawa, is himself somewhat surprised. It's unusual. In general, there is not a very big difference. Usually there is a small difference due to taxes, but only 2 or 3 cents. In Quebec in general, prices were higher than in Ontario.

He thus explains this difference, among other things, because of the margins of local distributors. Everyone pays roughly the same price for rough. It is determined globally. […] Refiners' margins are determined by the great American and Canadian Northeast, explains Professor Bernard.

Recall that the Ford government announced there has one month of a gas tax cut in Ontario, a measure that will be in place until December 31.

Radio-Canada visited a few stations in the federal capital on Saturday and noted that some Quebec motorists do not hesitate to make a detour to fill up on the other side of the Ottawa River.

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Michel, a motorist from Quebec, filled up on Saturday in Ottawa. He noted a difference of about 40 cents per liter between the gas station near his home and that of the federal capital.

For about fifty liters, I just saved $20. It's a lot. I feel lucky to live and work so close to Ottawa, he said.

Also, motorists could benefit from lower prices at the pump in the next few days, according to several signs that are already appearing in the region.

What is anticipated by the market is that it is possible that the rate hikes of interest cause a slowdown. If there is a slowdown, it will cause a drop in demand for petroleum products, underlines Mr. Bernard.

With information from Rebecca Kwan

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