No relief from gas prices
Gas price spikes 11 cents over last month
Hitting the highways this summer? Albertans may want to leave early, take a smaller vehicle — and avoid British Columbia. A full month before the May long weekend — when pump prices usually spike — Albertans are already paying an average of $1.253 for a litre of regular gas, up 11 cents from a month ago and up 16.7 cents from last year’s average.
In Lethbridge, posted prices — now about $1.289 —have jumped 8.5 cents in the last week. They’re now 17 cents higher than just a month ago.
And Dan McTeague, an analyst for the national Gas Buddy reporting service, says the worst is yet to come. This summer, he warns, Canadians will see the highest prices in years.
In part, he says, that’s because demand remains high despite the price hikes. And that demand could result in price creep right through to September.
“A stronger economy that affords motorists more disposable income, matched with greater fuel efficiency will continue to incentivize Canadians to take to the roads,” McTeague predicts.
While the OPEC nations have reduced production, he notes, U.S. production is increasing — and Canadian output is expected to hit a record 4.2 million barrels this year.
But prices are climbing as well, with West Texas Intermediate settling for close to $68 (US) per barrel this week. And across Western Canada, oil producers and refiners are getting their share.
Just the same, motorists in Regina — site of that province’s only refinery — are paying one of the nation‘s lowest prices this week, $1.164. Brandon remains relatively low as well, at $1.199.
For vacationers heading farther east, imported fuel refined in Atlantic Canada is selling for $1.186 this week in Moncton, N.B. or $1.234 in Halifax.
But McTeague is predicting far higher prices in British Columbia. For Albertans heading west, the first sticker shock could come in Golden ($1.359) or Kelowna ($1.369).
But Vancouver prices are already averaging $1.53, he reports, and they’re going up.
If Alberta’s government proceeds with proposals to scale back pipeline shipments — as Premier Peter Lougheed did in his time — then McTeague predicts prices will soar past the $2 mark.
And gas bars would be running out, he cautions.
“At least half of the stations would be going through rolling blackouts, or at least shutdowns, with stations having no fuel at all for several days,” McTeague says.
Airlines and BC Ferries could also be impacted, he points out. Along with people driving highway trucks or the family van, they also rely on Alberta-refined fuels sent through the long-running Trans Mountain line.
“There is no one else out there that is going to sell gasoline into this market,” McTeague says.
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