No relief in sight as gasoline price hits four-year high

Canadians celebrating the onset of summer driving season have been dismayed by another spring phenomenon, increasing gasoline prices

Canadians celebrating the onset of summer driving season have been dismayed by another spring phenomenon — rising gasoline prices across the country.

According to GasBuddy.com, the average price of regular gasoline in Canada on Monday was about $1.33 per litre, up 22 cents from the average of $1.11 per litre at the same time last year.

The record high for the same day was set in 2014 at just over $1.37.

Vancouver region prices have spiked to all-time record highs over $1.61 but will likely fall by four to six cents per litre over the next few weeks as two refineries in Washington state start up after maintenance shutdowns, said GasBuddy senior petroleum analyst Dan McTeague.

Related: Lower Mainland gas prices hit record-breaking 160+ cents a litre

Related: Gas prices keep rising

But he said prices will then rise again in the Lower Mainland — and across the country — as driving season gets into full swing.

“For the next couple of weeks, I think it’s going to be prices climbing down but, after May 24, look out, that’s when we’re back into the thick of it and prices could start to slowly but surely climb up with some spikes occurring,” said McTeague.

He said it’s possible that the average price in Canada this summer will be about $1.36 per litre.

GasBuddy pegged average Vancouver prices on Monday at over $1.58 per litre, up 28 cents from last April 30. McTeague expects near-record prices in Montreal and Toronto this summer.

Rising oil prices are driving fuel prices higher. The benchmark price of U.S. crude oil last week hit US$68.64 per barrel, the highest since December 2014.

Fuel prices usually rise across Canada and the United States during the annual spring maintenance cycle at refineries, which tightens supply, said fuel market analyst Michael Ervin, senior vice-president at the Kent Group Ltd.

Strong domestic economies are supporting even higher prices at the same time that demand is being boosted by exports from the U.S. Gulf Coast to customers in Mexico and South America, he added.

“Throughout the summer, generally speaking, prices are more stable as demand stabilizes and refiners are through their seasonal turnarounds so they’re better able to meet that demand,” said Ervin.

“I think that’s what we will see. But I’m not saying we’re at the end of the increases yet.”

The fuel price increases will filter through the economy, said McTeague, leading to less discretionary spending, higher inflation rates and fuel premium increases for truck, rail and air transport of goods.

Ervin said Vancouver-area wholesale prices are usually higher than most other regions in Canada because of logistical issues in supplying the market. He says an average wholesale price in Vancouver (not including tax and retail markup) is about 98 cents a litre, about 10 cents higher than in Winnipeg.

The U.S. daily national average for regular gasoline is US$2.81 per gallon, up from about US$2.39 per gallon a year ago, according to Oil Price Information Service.

“This will be the most expensive driving season since 2014,” said Tom Kloza, global head of energy analysis for Oil Price Information Service.

Several factors have helped drive oil prices higher. A wave of global economic growth has driven up demand for oil. At the same time, production cutbacks initiated by OPEC last year have helped whittle down oil supplies.

In the U.S., oil supplies were running 1.1 million barrels lower at the start of this summer’s driving season, which runs from April through September, than a year ago, according to the U.S. Energy Information Administration.

That has amplified the typical increase in gas prices seen this time of year. Already, U.S. consumer demand for gasoline hit a record high for the month of April, according to the EIA.

Related: $1.18 to $1.58 a litre: Are you paying the most for gas in B.C.?

With files from The Associated Press.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Elkford councillor Joe Zarowny remembered

The District of Elkford today announced the passing of long time councillor,… Continue reading

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

Fernie arena tragedy “wake up call” for global refrigeration industry

Technical Safety BC’s incident report shared across 60 countries, reaching as far as Poland

Lake Koocanusa under the microscope

Wildsight, Sierra Club BC, Headwaters Montana and U.S. university launch water sampling program

Province offers support ahead of Fernie arena tragedy anniversary

Loss of three men in workplace incident motivates Labour Minister to make B.C. safer

Legal pot price must be ‘competitive’ with black market: Blair

Bill Blair shared final words on journey to legalization ahead of official day Wednesday

Meet the City of Fernie candidates

Voters in Fernie will vote for one Mayor, six Councillors and one School Board Trustee on October 20

Meet the District of Sparwood candidates

Voters in Sparwood will vote for one Mayor and six Councillors on October 20

Meet the District of Elkford candidates

The Elkford Chamber of Commerce will host an All Candidates Forum on October 4

Mayor of Kamloops says ‘history has been made’ with vote on B.C.’s lone pot shop

The store to be run by the province in B.C.’s Interior is opening Wednesday as pot sales become legal across Canada

New bus route to ‘replace’ Greyhound along Trans-Canada Highway

Rider Express Transportation says they will soon begin a bus service from Winnipeg to Vancouver

U.S. pot firm urges Trump to deny Canadian producers ‘competitive advantage’

The challenge for U.S. firms lies in the fact that while recreational cannabis is legal in nine states and medicinal pot in 22 others, it remains illegal under federal law

Government says imprisoned Canadian terror suspects must face consequences

Public Safety Minister Ralph Goodale showed little sympathy Tuesday for such individuals who now want to return to Canada

How rules for inmate segregation in Canada will change under Bill C-83

Federal government proposing changes to rules around inmates in federal correctional institutions

Most Read