Gas prices will rise again by summer. Find out by how much
Drivers are being warned of another hike in gas prices in the coming months. But don't blame it on the carbon tax.
Canadians can expect to pay even more at the pumps soon.
When it happens, it won't be because of the recently-instituted federal carbon tax.
The surge can be attributed to a few sources -- from higher world oil prices to a spike in demand for diesel, plus seasonal factors such as the switch from winter to summer gas.
Analysts also believe more demand in the warmer months could eliminate future signficant reductions in prices, such as the recent drop that began late last year.
The Weather Network's Chris St. Clair said the biggest increase could be in diesel prices, as there is currently a greater demand for that type of fuel.
"More than six-cent-a-litre jump in the price of diesel will likely impact the cost of nearly everything, from food stuffs to commodities, according to analysts," said St. Clair.
“[This is] because most trucks and transportation systems utilize diesel for fuel."
He said many people have already switched to smaller cars, but this size of price rise may "necessitate new ways for us to economize.”
Canadians could face a gas-price hike of up to 15 cents by summer. Getty Images
PRICES COULD GO UP BY FIVE CENTS THIS WEEK: GASBUDDY
In Eastern Canada, prices could rise by five cents as early as next week, said Dan McTeague, senior petroleum analyst at GasBuddy, in an interview with CBC.
This is when the shift from winter to summer gasoline will occur.
"Ontario, Quebec, and the Maritimes are looking at a net five-cent increase on top of Monday's five-cent increase," McTeague said. That federal carbon levy at $20/tonne that applied in Saskatchewan, Manitoba, Ontario and New Brunswick added about 4.4 cents per litre."
The spike in Western Canada will be "phased in a little slower," Mcteague added, but drivers have already been hit with an increase of about two cents a litre.
Two provinces, British Columbia and Alberta, already have a carbon tax in place and their gasoline is refined closer to home, which influences when price increases take effect.
WATCH BELOW: B.C GAS PRICES ARE ONCE AGAIN ON THE RISE AND HERE'S WHY
GAS PRICES TO RISE BY 10 CENTS BETWEEN NOW AND END OF SUMMER: ANALYST
Susan Bell, an oil analyst at IHS Markit, told CBC she expects gas prices to rise by 10 cents between now and the end of summer, due to the start of an alleviation of a gasoline inventory glut in the market, and crude oil prices go up, in part because of demand for diesel fuel.
The International Maritime Organization (IMO) will introduce a sulphur limit rule for 2020, known as IMO 2020, which will reduce the amount of sulphur allowed in the fuel from 3.5 per cent to 0.5 per cent.
As a result, it will impact large ships that use low-grade fuel, something considered the bottom of the barrel, because of its air-polluting attributes.
To conform to the regulation, numerous ships are expected to switch to diesel, driving up demand for heavy crude oil.
"International factors such as the International Maritime Organization's global bunker fuel oil specification change will require refiners to increase crude oil runs to meet strong diesel demand," Bell said.
RECORD-HIGH PRICES IN B.C.
In B.C., the government is considering providing relief this year to those who can't afford the increasing gas prices.
This comes after record-high prices across the Lower Mainland Thurdsay, with one particular station in Coquitlam reportedly charging nearly $1.67 per litre.
Premier John Horgan told Tri-City News there are other factors at play besides provincial taxes and offered support from the government this summer, if an opportunity arises.
“But at this point, I’m hopeful there will be some correlation between the commodity price and retail price. Those are issues that are market driven and out of my control,” he said.
The B.C. premier also said he can’t explain a 12-cent-a-litre increase and suggested the oil industry should invest more in refineries and the federal government should devote more finances to supply.
Source: CBC News | Tri-City News