Newspaper article The Canadian Press

Gasoline Prices to Take a Hike during Summer Months, Industry Observers Predict: Gas Prices Up, Will Likely Go Even Higher

Newspaper article The Canadian Press

Gasoline Prices to Take a Hike during Summer Months, Industry Observers Predict: Gas Prices Up, Will Likely Go Even Higher

Article excerpt

TORONTO - Gasoline prices are up sharply in many parts of Canada and, while a hike Wednesday was less than some predicted, the consensus suggests it's just the beginning of increases heading into the summer.

"Normally gasoline prices start to retreat after the May 24 holiday weekend, but I can't see this happening this year," said analyst Roger McKnight of Oshawa-based En-Pro International Inc.

"I can see this sticking right through the middle of July."

In Toronto, prices were up almost 3.4 cents a litre on Wednesday afternoon to an average of about $1.38 for regular gasoline, according to GasBuddy.com, a website that compiles data submitted by users across the country.

Prices were also up 2.6 cents per litre in Ottawa, for an average price of $1.32 per litre, and up 2.4 cents to nearly $1.36 in Hamilton, according to GasBuddy.com.

Elsewhere, the price spike was more modest.

In Quebec City, GasBuddy said prices were up less than half a cent at $1.41 per litre and they actually declined in Montreal by six-tenths of a cent to about $1.47 per litre.

Motorists were also taking it on the chin in Edmonton, with prices up four cents per litre to over $1.18, still the lowest price among major Canadian cities surveyed.

Finance Minister Jim Flaherty said gas prices "are a concern for everyone" and the shocks are not just limited to Canada.

"People around the world are seeing oil prices go up, the Americans, the British, everybody is seeing the same phenomena. The reason for that of course is because the price of oil is a global price, it's not a national price," he told reporters in Vancouver.

"In terms of our own country, of course we export oil, so there's some benefit to Canada, it terms of prices going higher. But it's more difficult for all of us who buy gasoline at the pumps."

Historically, gasoline prices start to climb as a lead up to the Victoria Day holiday weekend in May, in anticipation for the annual surge in fuel demand as more Canadians take road trips.

A changeover at North American refineries, which make different grades of fuel for the warm and cold seasons, also contributes to the annual spring price surge.

However, this year the seasonal bump has come earlier than usual, though explaining why that is happening isn't simple. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.