Calgary motorists are rushing to fuel stations as gasoline prices in the city have dipped under the psychologically significant one-dollar mark, offering a welcome holiday reprieve at the pumps. Analysts are advising consumers to take advantage of the situation while it lasts, as prices this low have not been seen in years.
A Rare Sight at the Pumps
On Monday, December 29, 2025, prices at some stations reached as low as 86.9 cents per litre, with notable lines forming at locations like the Petro-Canada on Sun Valley Boulevard S.E. Local resident Lorraine Fisher, who topped up her tank, expressed relief at the timing. "It’s really nice, especially during the holidays when things can be kind of tight, budget-wise anyway," Fisher said. She noted the understandable rush, adding, "Gas prices are so low, and I can definitely understand why everyone and their dog is here."
Analyst Points to Perfect Storm of Factors
Patrick De Haan, head of petroleum analysis at GasBuddy, confirmed the trend, stating the city-wide average for Calgary was around 104.7 cents per litre, with the provincial average slightly higher. He explained that only a handful of stations are reporting sub-dollar prices, but their impact is significant. "That is dragging competition to lower prices as well in surrounding areas," De Haan said, citing wholesale clubs like Costco offering fuel at 96.9 cents per litre as a major competitive driver.
De Haan highlighted a confluence of factors pushing prices down. The pause in the federal carbon tax is a direct contributor to the drop below a dollar. Furthermore, an increased oil supply from OPEC throughout much of 2025 has lowered global oil prices. Seasonal patterns are also at play. "Along with lower oil prices and the federal carbon tax pause, falling seasonal demand as Canadians stay home for the holidays and schools are closed," De Haan explained. This reduced demand has allowed refineries, now finished with maintenance season, to boost supply, applying additional downward pressure.
A Price Point Not Seen Since the Pandemic
The current low prices represent a notable milestone. "It’s the first time since 2021 at the height of the pandemic that we’ve seen prices this low," De Haan emphasized. This context makes the current dip particularly striking for consumers who have endured higher costs for several years. The analyst's message to drivers is clear: enjoy the savings while they can, as this combination of favorable conditions is likely temporary. The aggressive competition among retailers, combined with the tax pause and seasonal factors, has created a short-lived window for substantial savings at the fuel pump in Calgary.
