Metro gas price expected to reach record high

Metro Vancouver drivers could be in for a nasty shock at the pumps as the price of gasoline is expected to set a record today, according to one gas analyst.

Dan McTeague, president of Canadians for Affordable Energy, predicts prices will jump to $2.169 per litre, smashing the record set on March 10 when prices nearly hit $2.15.

The price spike is due to a rally in oil prices, said McTeague, who also runs gas price predictor website Gas Wizard.

“We're seeing that increase to record levels right across the country.”

Toronto, for example, will hit $1.959 per litre, while Montreal is expected to set a record at $2.03. In Victoria, gas prices will jump from $2.09 to about $2.14.

“And it could go much higher,” said McTeague, warning that skyrocketing costs of the vital commodity could trigger a global recession.

“What happens when you hit $2.30 cents a litre? Who can afford that? Maybe that's what climate activists want but that's not something the economy can afford, and could potentially bring the economy to its knees.”

McTeague is keeping a close eye on China, the world's second largest oil consumer after the U.S. As major Chinese cities tame the most recent COVID-19 wave and exit lockdowns, the government could stimulate the economy in the face of a possible slowdown, which McTeague said would kick global oil prices into overdrive.

“$2.20 to $2.25 (per litre) wouldn't be hard to imagine in Vancouver and the Lower Mainland.”

Some drivers might consider heading south of the border for cheaper gas.

Fuelling up in Blaine is still a comparative bargain. A gas station in South Surrey, for example, was advertising prices of $2.12 per litre Thursday afternoon, while the Exxon station in Blaine had gas at US$4.66 per gallon.

After conversions, the same 50-litre tank of gas would cost a driver $106 in Surrey compared to $79 in Blaine, netting a savings of $27.

Depending on your proximity to border towns, the trip may or may not be worthwhile. It's usually best to combine gas runs with other benefits of going down to the U.S. such as picking up packages or cheaper cheeses.

Vijay Muralidharan, a petroleum consultant at Kalibrate Canada, also expects higher prices due to supply issues and strong post-pandemic demand. Other factors include Western sanctions against Russia for its war with Ukraine, and the approach of the summer driving season.