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

Woman killed in head-on crash near Vanderhoof

RCMP say driver crossed the centre line and hit a loaded fuel tanker truck

African Children’s Choir making a difference in the world

Waroto Children’s Choir celebrate Christ and caring for community on six month world tour

Snowpack at normal levels, but El Niño is lurking

Despite a warmer than usual winter that has produced a dearth of… Continue reading

Letter: New party with a strong platform could form majority government in B.C.

Voters fed up with BC’s political parties open the door for a new party to enter BC politics

‘Tripod’ delays access to Unist’ot’en camp

Social media rumours of cultural significance quashed, meaning police “exclusion zones” should end.

Giant rotating ice disk forms in Maine river

Ice disk that is roughly 100 yards wide has formed in the Presumpscot River

First Nation supporters march to Premier Horgan’s MLA office in Victoria

Upwards of 30 people moved across the Greater Victoria municipality of Langford on Wednesday morning, in solidarity with the Wet’suwet’en people

Liberal candidate steps aside after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

SUV wedged on top of car in B.C. mall parking lot has customers confused

The accident occurred Tuesday, no injuries were reported

Huawei founder thanks inmates, Canadian justice system for treating daughter well

Ren Zhengfei said he believes there will be a just conclusion to the case of his daughter, Meng Wanzhou

May government faces no-confidence vote after Brexit defeat

British Prime Minister Theresa May said she would stay put in her leadership role

Razor burn: Gillette ad stirs online uproar

A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash

Feds poised to bolster RCMP accountability with external committee

Long-anticipated move is the latest attempt at rebuilding the force following years of sagging morale

Most Read