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

VIDEO: Surrey hair salon joins sustainability initiative

Hair can be used to create boom to clean up oil spills: Green Circle Salons

White Rock breaks temperature record

B.C. city was the hottest in all of Canada

South Surrey church members ‘praying for accused mother… for the whole process’

Lisa Batstone’s second-degree murder trial continues this week in B.C. Supreme Court

City will ask Fraser Health to remove pay parking at SMH, Surrey councillor says

Surrey’s new council has already made parking free on neighbouring city streets

VIDEO: Health and Technology District breaks ground on new building

City Centre 3 is the third of eight planned buildings: Lark Group

Trudeau offers to help Pacific islands face climate change impact

Prime Minister Justin Trudeau met with the leaders from the Pacific island nations on Saturday during the APEC Summit in Papua New Guinea

BC Minister of Agriculture loses stepson to accidental overdose

Lana Popham announces death of her 23-year-old stepson, Dan Sealey

Canadian military’s template for perfect recruits outdated: Vance

Gen. Jonathan Vance, the chief of defence staff says that the military has to change because the very nature of warfare is changing, particularly when it comes to cyber-warfare

‘Toxic’ chosen as the Word of the Year by Oxford Dictionaries

Other top contenders for 2018 include ‘gaslighting’ and ‘techlash’

RCMP bust illegal B.C. cannabis lab

Marijuana may be legal but altering it using chemicals violates the Cannabis Act

1 woman dead, man in hospital after ‘suspicious’ crash: police

Homicide investigators and Burnaby RCMP are investigating the fatal collision

Canada defeats Germany 29-10 in repechage, moves step closer to Rugby World Cup

Hong Kong needs a bonus-point win over Canada — scoring four or more tries — while denying the Canadians a bonus point

Avalanche Canada in desperate need of funding

The organization provides avalanche forecasting for an area larger than the United Kingdom

5 B.C. cities break temperature records

Parts of B.C. remain warm, at 10 C, while others feeling chilly

Most Read