An analyst is out with his assessment of where fuel prices should be come this time Thursday, and he sees a slight decrease in gas—perhaps a penny or so. However, Dan McTeague, President of Canadians for Affordable Energy, is warning of an impending 3-cent increase in the cost of diesel. Worse, he expects a big jump in the cost of fuels used for heating—somewhere around 5 cents a litre.

One of the key factors keeping gas prices from going down further is the value of the Canadian dollar which has been steadily dropping and is now below 78 cents U-S.

McTeague told VOCM’s Gerri Lynn Mackey on YOUR VOCM Mornings that he thinks we’re nearing the point where prices will begin to roll back because of what he calls “demand destruction.”

That term means that the product is so expensive, people cannot afford to buy it as $2.20 a litre is out of reach for many people. Less demand means lower prices.

The Public Utilities Board sets the pricing schedule at midnight tonight.