Gasoline prices in Quebec are so high and it is the most expensive in these 3 regions at the moment

This matches the price of gasoline over the past week, averaging 147.8 cents per liter, with prices above the 150-cent threshold seen on the island. It is also in line with global trends.

So why is this happening to us? Have we collectively angered the gas gods who make us suffer with their ruthless anger?

We asked Moshe Lander, lecturer in economics at Concordia University, and it turns out that’s not it. He explained what is really going on in simple, easy-to-understand terms.

Offer and demand

The reason gas is expensive right now, according to Lander, is as simple as the concept of supply and demand.

“What would happen if you reduced the amount of supply available for any product?” Imagine that Doritos bags disappear from the shelves […] What inevitably happens? The price of Doritos […] they’re going up, “he said.

“If you imagine at the same time that there are a whole bunch of consumers starting to show up and want to buy Doritos, the prices will go up. And so if you take those two components and put them together, the prices go up. sharply […] That’s all that’s going on in the gas market right now. “

He explained that as the blockages lift and people resume their pre-pandemic routines – including traveling, flying and driving more frequently – it increases the demand for gasoline as well as the byproducts therein. enter, which are also used to make jet fuel.

At the same time, he said, there are supply constraints, such as unbuilt pipelines around the world and disruptions to the global supply chain, which he called “the perfect confluence of factors “.

Shock sticker

Lander told MTL Blog that we should also take our own perception of gas prices into account when evaluating them.

“Gasoline prices go up and down naturally,” he said.

“The point is they’re sort of going back to somewhat higher levels than they were 18 months ago, but they’re not that far away. […] In the last 12 months where no one was going anywhere, we have become accustomed to seeing prices drop to around $ 1 a liter. Now that they come back to $ 1.40, it’s like, […] “Wow, it happened suddenly” and I think that’s part of the problem too. ”

The new baseline

If you’ve pushed your car to its limits in the hopes that gas prices will drop soon, you might want to think again.

Lander said he expects recent prices to become “the new baseline.”

Lander said if Canada’s new Liberal government is to successfully deliver on its environmental promises, gasoline prices will have to rise dramatically.

“I think if we’re upset right now at $ 1.45 a liter… wait,” he said. “It’s going to be a lovely nostalgic memory.”

The cover image to the right of this article is for illustration purposes only.

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