Quebec’s drivers are now concerned about this new oil price high that occurred this October.

The price of one litre of gas has been set to 1,79$ today, reversing a long decline after being at its all-time high of 2,24$ this summer.

The people are getting scared that the price will go up even more. Citizen Lise Desrosiers said: “I am sure many people do not have the money to afford gas right now, which is a terrifying reality.”

The oil price is currently on the rise, possibly due to the decision made by OPEC+ to decrease their daily oil production by approximately 2 million barrels. Proposals to reduce oil targets are being made for the first time since the Covid outbreak. This reduction has already had an impact, as the price of one litre has increased by 11% to $1.79 due to the reduction in OPEC+ targets.

President Joe Biden tried and is still trying to get Saudi Arabia and all of OPEC+ to increase their oil production, saying that the giant producers will not pump more so people can have gasoline to get to work is not correct.

Many people believe that inflation is a factor that is most likely affecting prices. The rising inflation rates impact various items, such as food, electronics, and even petrol. One litre of oil is around 1.65$ this month, up by 0.60 over the past ten years. This price increase is having people change their everyday lifestyle to be still able to get to work using their cars.

“People having to restrain themself from getting nice clothes and good food to be able to afford oil is not something we should accept,” said Mme.Desrosiers.

Russia is the world’s third-largest oil producer, following Saudi Arabia, and surpassed only by the United States. If the second and third largest oil producers decrease their output, the price of gasoline will continue to rise as significant oil companies struggle to meet demand.

The Russia-Ukrain war is also a factor in this height of the price. This bomb of a news was revealed to us on February 24, 2022. This caused petrol to rise above 100$ for one barrel before being at its highest price of 120$ a barrel as Canada and all of NATO imposed sanctions on Russia.

After NATO declared a ban on importing oil and products from Russia, major energy companies like Shell and BP, who had contracts with Russia, raised their prices by 12%.

After all the problems with oil production, U.S. oil companies are quick to expand their oil production. ACCORDING TO THE U.S. ENERGY INFORMATION AGENCY, U.S. oil production has been set to 11.5 million oil barrels a day. As it is more than 200 000 barrels than what it was last year, it’s about half a million barrels less than what it was back in 2019.

Solution

One solution that could counter the rise in prices would be to find a sustainable transportation system that does not depend on oil. Quebec has already found a solution that only makes some happy. If you reside in Quebec, you have likely heard of the Tramway.

The Tramway is a 100% electric vehicle that can be used by thousands of people a day. This would be an excellent substitute for buses while being 100% electric.