It's going to be another year of low oil prices, according to a recent report from Deloitte Canada, with prices seeing levels close to what they were in 2021.

The consultancy firm said the slump is due in part to a decrease in demand growth, adding that 2023 was a year of volatility for the commodity's markets.

"Slowing global growth demand for crude oil and increased U.S. production to compensate for much of the cuts by OPEC+ countries," Andrew Botterill, leader of national oil, gas & chemicals at Deloitte Canada, said in a statement.

So what does that mean for the price of fuel? In short, it could continue to get more expensive.

Let's break that down:

Pump prices are based on four factors: wholesale costs, retail markup, taxes — which are typically an average of 50 cents per litre at the pump — and the price of crude oil.

When demand for crude oil increases and supply decreases, the price of gas increases.

The Deloitte forecast notes that prices for crude oil based on the West Texas Intermediate (WTI) are falling. WTI is typically seen as the benchmark for oil pricing.

In 2023, Alberta's government said it would reintroduce its gas tax this year on a sliding scale basis — based on predictions that the WTI would price crude oil higher than in previous years.

On Wednesday, the average price of gas across Canada is $1.39 per litre, according to the Canadian Automobile Association.