Gas prices are expected to go up as much as ten cents per litre across BC as U.S. oil inventories are 73 million barrels lower than at this time last year.
That’s the latest analysis from Dan McTeague, senior petroleum analyst at GasBuddy.com
Average retail prices in British Columbia have risen 2.2 c/L in the past week and the average price is $1.25.5. In Kimberley, prices are currently $1.28.9. The national price average is $1.20.13 c/L, with prices increasing 1.8 cents in the last week.
Including the change in gas prices in British Columbia during the past week, prices on Sunday were 8.8 c/L higher than the same day one year ago and are 1.0 c/L higher than a month ago. The national average has increased 2.0 c/L during the last month and stands 13.7 c/L higher than this day one year ago.
According to GasBuddy historical data, gasoline prices on January 29 in British Columbia have ranged widely over the last five years:
116.41 c/L in 2017, 97.00 c/L in 2016, 97.50 c/L in 2015, 124.50 c/L in 2014 and 120.54 c/L in 2013.
“A continued record-time draw in U.S. oil inventories, which now stand over 73 million barrels lower than last year, appears to be the basis for gasoline’s meteoric upward momentum,” McTeague said. “Combined with the return of financial speculation in petroleum futures, pump prices can be expected to reach highs across Canada not seen for this time of year since 2013. With Canadian gas prices now reaching 15 cents a litre higher on average than in January 2017, more pain at the pumps seems inevitable for most drivers. Without a corresponding strengthening Loonie, 2018 is on track to passing the $1.30 a litre average once the summer blend shift occurs mid-April.”
“For now, Vancouver, Victoria and the Lower Mainland should see prices rise 2 cents a litre, while elsewhere in B.C. a 10 cent a litre rise in cities like Kamloops seems inevitable. Calgary, Edmonton, Regina, Saskatoon and Winnipeg, should be in store for a 5-12 cent a litre hike given the tendency of most stations to drop their retail operating margins by this amount over the last weekend. For Toronto, Hamilton, Ottawa and London, Sudbury and most of Southern Ontario, a 2 cent rise is in play, while Montreal, which traditionally sees retail margins restored by Monday or Tuesday, will see a 10 cent increase to 137.9 a litre. The Maritimes and Newfoundland which follow last week’s prices under their regulated price regimes will receive a another 1-2 cent a litre hike this week, bringing prices there more in line with the rest of eastern Canada,” McTeague predicted.