For the first time in over a year, motorists will see service stations post prices somewhere around a dollar/litre in the Calgary and Cochrane area.

Dan McTeague, Senior Petroleum Analyst for Gas Buddy, says he had to go back to October 2017 to see gas prices nationally average out at 1.09c/L. Stating while prices could vary in Calgary/Cochrane from 111.9 to 95.9 at deep discounters such as Costco, McTeague says a drop in oil prices is exactly what is behind the dramatic decreases. "The jaw-dropping freefall on energy markets accelerated further this past week with oil prices dropping a staggering $6.34 per barrel, erasing 14% in value. Meanwhile, some Canadian oil blends traded as low as $12 per barrel."

While great news for consumers, the drop is certainly not good for those producing globally and even worse for those in Canada and Alberta for Western Canadian Select. "Even when oil was selling for $76 to $86 dollars a barrel for WGI and BREC, respectively, we were only still getting $20 for our oil here which has enormous implications for government revenues, jobs, economic momentum, and investment. All of which seem to be disappearing."

McTeague says the continued drop in prices is likely to only leave provincial and federal governments with significant debt, which many communities outside of oil producing areas are not aware of. "With the federal government cancelling two very vital programs, Northern Gateway and Energy East, and putting all their eggs in one basket with Trans Mountain, I don't see energy prices moving up in the short term, long term may be a different matter, but for now the lower prices will stay in effect."

While the news may be worrisome for oil producers, there is a chance prices could be subject to an upturn once OPEC and Russia agree to production curbs following the December 6 meeting of the cartel’s members.

For LIVE fuel price averages, go HERE.