Gas prices are expected to rise above $ 1.64 over the weekend in Metro Vancouver, petroleum analysts say.
Metro Vancouver residents driving home for Thanksgiving may want to fill their tanks now rather than wait until the weekend.
That’s because prices are likely to rise to at least $ 1.64.9 over the long weekend, according to Patrick De Haan, head of petroleum analysis at GasBuddy.com.
Gas prices were already above $ 1.60 at many stations Thursday in Metro Vancouver, where drivers get the highest fuel costs in the country. The average was $ 161.5, De Haan said.
“There are still some options out there at some of the wholesalers, one of the Costco stations is at $ 145.9, so anyone hitting the road over the long weekend might not want to wait much longer if they have to fill their tank , “he says.
Part of the reason for the increase is that crude oil hit a new high of seven years, which has quickly pushed up prices, he said. The Organization of the Petroleum Exporting Countries also decided to keep oil supplies tight and still not produce as much as before the level before COVID-19.
“Demand simply exceeds supply,” he added.
He also noted that there are worldwide fuel problems and rising natural gas prices raise fears of greater demand for crude oil for electricity production. There is a coal shock in China and a natural gas crisis in Europe because Russia has cut off shipments, so in both cases crude oil can be used as a substance to generate electricity and heat homes this winter.
“All of these factors are leading to an increased perceived demand for oil, and that is what is behind the rise of oil to a height of seven years,” De Haan said.
Franco Terrazzano, federal director of the Canadian Taxpayers Association, said drivers feel the pain of high gas prices, but taxes make things much worse.
‘More than a third of the gas price is actually tax in many provinces. In fact, Canadians even have to pay taxes on top of taxes when they fill the tank, ”he said.
Terrazzano estimates that by 2030, the federal carbon tax will cost about 40 cents per tonne. Liter of gasoline.
“Taxes are already costing Canadians a lot of time at the pumps, and that tax bill will only grow with increases in carbon taxes,” Terrazzano said. “If politicians want to improve affordable prices and lower prices on the pumps, they need to provide tax breaks.”
Here’s a look at the average gas prices this week, according to GasBuddy:
• $ 1.37 per liter in Halifax.
• $ 1.46 per liter in Montreal.
• $ 1.40 per liter in Toronto.
• $ 1.42 pr. Liter in Winnipeg.
• $ 1.36 pr. Liter in Regina.
• $ 1.36 pr. Liter in Calgary.
• $ 1.59 per liter in Vancouver.
De Haan said rising gas prices are happening in Canada and the United States and have nothing to do with the long weekend.
And do not expect to be exposed to the pain of the pumps soon. De Haan said he expects to see gas spending rise even higher in the coming weeks.
– With files from Postmedia News