Gas prices going up

Gas prices going up

Several factors led to latest rise says petroleum analyst

Gas prices took a considerable jump in British Columbia this week, and one expert says, get used to it. The days of cheaper oil and gas may well be behind us, says Petroleum Analyst for gasbuddy.com Dan McTeague.

McTeague is a consumer advocate specializing in energy and current affairs. Known as Canada’s “Gas Guru,” he founded tomorrowsgaspricetoday.com to better help motorists anticipate the price of gasoline in advance across Canada. He has over three decades of experience in the petroleum industry, and spent 18 years as a Member of Parliament.

On Wednesday in Kimberley, gas was $1.16 per litre at some locations, and by Thursday morning, the price per litre was $1.25.9

“The price hike follows a big 60 cent a gallon rise in the gasoline futures market in Chicago,” McTeague told the Bulletin in a phone interview. “This is the market which determines the price we pay for gasoline across all of Western Canada except the BC Lower Mainland and Vancouver Island.”

There are three main causes for the spike, although McTeague also said that the wholesale price of gas has been creeping up for the past several weeks and at some point retailers simply cannot absorb it any longer and have to raise prices.

“These prices have been going up for weeks and retailers have been holding off. The writing was on the wall with wholesale prices going up. The retailer was seeing those increases and knew what they’d be paying for the next delivery. A big warning sign was Tuesday night, when we saw the wholesale price rise by 7.4 cents a litre.”

Once the wholesale price is set, McTeague says, within 36 hours, that’s the price gas stations pay for their next shipment.

Factor one in the price increase is a response to a leak found on the all important Explorer Pipeline, which delivers fuel from the US Gulf Coast to the US midwest.

“Repairs are underway and once finished, we should see prices taper off in about 10 days,” he said.

Another issue is seasonal refinery maintenance which many midwest refineries delayed to help offset the supply crunch that occurred after Hurricane Harvey hit Texas.

“Some of these refineries were supposed to go offline at the end of August, and delayed. Now quite a few are offline at once.”

Finally, demand for fuel is skyrocketing in the US and that is eating up any over-supply. Despite all the talk of electric cars and green energy, McTeague says American baby boomers are still hooked on gas and there’s no end to that in sight.

“It’s a sign of the times,” he said. “Oil prices are firming up, over supply is drying up and American demand is strong and not giving up.The days of cheaper oil and gasoline may well be behind us.”

carolyn.grant@kimberleybulletin.com

Just Posted

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

Ryan McKenzie of the Kimberley Trails Society made an in-depth presentation to City Council describing the initial steps of the Electrify the Mountains eBike trails project. This is a look at the project one map.
Kimberley City Council hears details on Electrify the Mountain project

At the meeting of City Council on Tuesday, June 8 Ryan McKenzie… Continue reading

The Kimberley Public Library invites kids of all ages to join the 2021 BC Summer Reading Club. Kimberley Public Library file
Kimberley kids invited to join summer reading club at Public Library

The Kimberley Public Library invites kids of all ages to join the… Continue reading

Provincial Health Officer Dr. Bonnie Henry on Thursday, June 10, mentioned Grand Forks among two other COVID “hot spots” in B.C. Photo: Screenshot - YouTube COVID-19 BC Update, June 10, 2021
PHO Henry says West Kootenay city is a COVID ‘hot spot’ in B.C.

There are 11 cases of COVID-19 in the Grand Forks local health area, according the BC CDC

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Police cars are seen parked outside Vancouver Police Department headquarters on Saturday, January 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver police officer charged with assault during an arrest in 2019

The service has released no other details about the allegations

Denmark’s Christian Eriksen receives medical attention after collapsing during the Euro 2020 soccer championship group B match between Denmark and Finland at Parken stadium in Copenhagen, Saturday, June 12, 2021. (AP Photo/Martin Meissner, Pool)
Christian Eriksen in stable condition, Euro 2020 match resumes

Eriksen was given chest compressions after collapsing on the field during a European Championship

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps off Vancouver Island

Department of Fisheries and Oceans responders spend hours untangling whale

As stories of the horrors of residential schools circulate after the Tk’emlups te Secwepemc First Nation announced it had located what are believed to be the remains of 215 children, Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs said he feels a connection with the former students. THE CANADIAN PRESS/Darryl Dyck
2 sides of the same coin: Ex-foster kids identify with residential school survivors

Grand Chief Stewart Phillip says the child welfare system takes Indigenous children from their families

Most Read