B.C. gas prices to hit highest levels in years: GasBuddy forecast

In 2018, Vancouver is forecast to see the highest peak prices at $1.52 per litre

With demand for oil at an all-time-high globally, petroleum analysts say B.C. consumers should expect to see some of the highest prices they’ve ever seen at the pump this year.

In GasBuddy’s 2018 forecast report, it says “circumstances beyond Canada’s control,” such as a surging U.S. dollar versus a weaker loonie and the U.S.’s growing exports, will lead to premium prices across the country.

Other major factors include OPEC’s 2016 decision to cut oil production, according to GasBuddy senior petroleum analyst, Dan McTeague.

“That decision curbed excess supply and began soaking up brimming global inventories of crude oil, at the same time boosting oil prices, which was the major reason for OPEC’s decision,” he said in the report.

In B.C., where gas prices vary rather drastically within the province, Vancouver and Victoria are anticipated to see the highest costs of more than $1.38 per litre on average.

That doesn’t include an extra 1.2 to 8.5 cents per litre that will be added effective April 1, when carbon taxes increase to $35 per ton.

READ MORE: No carbon tax relief at the gas pumps

McTeague expects the Canadian average price for gasoline in 2018 to be $1.19 per litre – seeing reprieve in the winter and hitting record numbers in the summer. This will mark the highest yearly average since 2014.

While Vancouver is forecast to see the highest peak prices at $1.52 per litre, Winnipeg and Saskatoon should top out at $1.29. Meanwhile, the highest price forecast for Calgary is $1.33.

“We anticipate that consumers will see gas prices that will be higher than 2017, slightly lower than levels seen in 2014, with a yearly average of $1.19 per litre, the highest since 2014,” the report reads.

With fewer refineries, disruptions shock pump prices

For gasoline, a stable benchmark price for oil is only part of the story, GasBuddy warns.

Seasonal price differences, specifically during the changes in gas formulas from winter-to-summer and then summer-to-winter blends, are just the first of many factors influencing pump prices in both the U.S. and Canada.

Propelled by a stronger economy, and greater exports, demand for petroleum products continued to rise at record-setting levels in 2017, the report suggests, with November seeing the “strongest” consumer gasoline demand ever.

With ongoing demand, mixed with refinery capacity continuing to grow to meet the need, consumers will see shockwaves to the pumps when outages or disruption occur, such as natural disasters or fiscal policies and decisions from central banks.

“Such events are likely to happen again in 2018, creating temporary hotspots regionally.”


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Two fires of note burning in Southeast Fire Centre

As of Saturday afternoon there were more than 20 fires burning in the Southeast Fire Centre.

‘Farm the Kootenays’ creates supportive community

Helping hobbyists and serious producers alike, the Facebook group has grown to nearly 12,000 members

Who will fill the Greyhound void in the Kootenays?

Minister Conroy, MLA for Kootenay West sees opportunity for local operators

Equipment lost in arson at Greenwood landfill

The cost of replacing equipment is expected to be significant.

What you see …

If you have a recent photo to share email editor@trailtimes.ca

Here’s what you need to know about Day 2 at the BC Games

From equestrian to volleyball to swimming, all 18 events in full swing here in the Cowichan Valley

B.C. mining company, involved in 2014 spill, ordered to pay lost wages

Mount Polley Mining Company must pay wages to 26 employees who were laid off without proper notice

Volunteers provide the glue that keeps BC Games moving

The 2018 Cowichan Summer Games had more than 2,300 volunteers on hand across Vancouver Island

No Name brand chicken nuggets recalled due to possible salmonella

Canadian Food Inspection Agency says multiple illnesses reported in B.C., Alberta and Ontario

Lodeiro scores twice to help Sounders beat Whitecaps 2-0

Seattle’s Nicolas Lodeiro opened the scoring in the fifth minute when he converted a penalty kick

Race walker breaks 18-year-old BC Games record

Zone 6 athlete Olivia Lundman crossed finish line with ease, to loud cheers in Cowichan

PHOTO GALLERY: BC Games Day 2

A brief look at action from the 2018 BC Summer Games in the Cowichan Valley

BC Wildfire update on 14 major Okanagan blazes

Watch the media briefing on the current fire situation in the Okanagan.

2017 wildfires give B.C. mom chance to say thank you to officer who saved her son

An unlikely encounter in the rural community of Likely, near Williams Lake

Most Read