Gas prices hit eight-month low

New Brunswick drivers are enjoying the lowest pump prices since February as the cost of gasoline continues to fall, but one industry expert is warning the low prices won't stay for long.
The New Brunswick Energy and Utilities Board dropped the price of self-serve regular gasoline to $1.05.4 during its weekly price-setting on Thursday morning, down from $1.09.7 last week.
Kevin McCann, the New Brunswick general manager for Wilson Fuels Co. Ltd., said motorists can thank slumping crude oil prices when they're filling up their tanks. The price of crude oil is trading at less than $70 US a barrel today, down from a high of $147.27 on July 11.
"There is no question we are going to see $150 per barrel again and it will be here sooner than later," McCann said.
New Brunswick's regulated gas prices are set based on the price of gasoline at the New York Mercantile Exchange. Normally the price of gas moves in the same trend patterns as crude oil. When oil was at its peak in July, the price of regulated self-serve gasoline hit $1.38.8.
While motorists may be enjoying this dip in gas prices, the industry representative said he doubts it will spark a return to previous gas demand levels.
"I don't think you are going to see people rushing out to buy SUVs or V8 or V12 [engines]," McCann said. "I think high pump prices are in the back of their minds and the underlying factor is consumer confidence, it's not just pump prices but what is happening in the economy."