Gas prices in Canada see one of the ‘biggest’ drops ever. What’s going on?

Prices at gas pumps across Canada have fallen significantly since the carbon tax was removed, but there is more to the story and it may be more bad news than good.

Many Canadians have likely noticed that the cost to fill up their vehicles has come down over recent weeks.

At the same time, Reuters reported that CEOs of Canadian oil and gas producers said on Tuesday they are seeking to avoid making abrupt decisions as global oil prices hover around four-year lows and recession fears grow.

There are a few possible reasons for these price declines, some specifically for Canadians, along with factors affecting drivers and consumers globally.

The federal Liberals did away with the consumer carbon price shortly before calling the federal election while keeping the industrial carbon price for large emitters in place.

April 1 was the day the consumer carbon price ended. So far this month, there’s been a drop of roughly 15 to 20 cents per litre at most gas stations across the country.

“It’s one of the biggest (gas price) decreases we’ve ever seen across Canada. That goes to show how much the carbon tax has been costing Canadians,” says Patrick De Haan, a petroleum analyst at GasBuddy.

But, there’s more to the story when it comes to the cheaper cost of gasoline.

Stock markets have sold off since U.S. President Donald Trump started a trade war by imposing tariffs on other countries, including Canada, prompting fears of a global recession.