Gasoline prices get spring fever, to hit near records

Analyst says drivers won’t see relief until demand slows in fall

CALGARY— 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 $1.11per 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.

“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,” McTeague said.

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 $68.64 (U.S.) 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,” Ervin said.

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