London gas prices dropped suddenly Tuesday afternoon, reaching low-to-mid 70 cent per litre mark. They were the lowest gas prices in the entire province of Ontario. By Wednesday morning, they were back up to mid-80s.
These prices are some of the lowest prices we’ve seen in 6 years, but they are also very inconsistent.
“What’s happened in the London market, is it continues down this road of cutthroat competition at the retail level”, says Dan McTeague, Senior Petroleum Analyst at GasBuddy
Dan McTeague adds that, “when you see prices that are constantly without a retail margins, and we’ve seen this for quite some time in the London market, the major players who supply the large box stores really had enough and what they are prepared to do it, is to drop prices below what is economically viable.”
London gas prices are expected to go back up in the next couple of weeks.
