Expect a turbulent year ahead in gas prices across Canada. (Ashley Wadhwani/Black Press Media)

Canadian drivers can expect a wild ride at the pumps for 2019: analyst

Vancouver expected to displace Montreal as the highest taxed jurisdiction on fuel in North America

Motorists can expect a year of volatility at the pumps this year as world markets move sharply in varying directions for the foreseeable future, predicts one analyst.

“Canadian drivers should expect a bumpy ride at the pumps in 2019 with markets fluctuating wildly given the uncertainty over the economy as a whole and energy markets being driven by a news headline sensitive stock market,” said Dan McTeague, senior petroleum analyst with GasBuddy.

At the outset of 2018, GasBuddy accurately predicted a year that would see pump prices reach their highest annual average since 2014. Although the price to fill up dropped substantially in the final quarter of the year, average prices remained 13.9 cents a litre higher than 2018 at $1.242 per litre, the highest since 2014’s average of $1.263 per litre.

RELATED: Capital Region regular gas prices highest since 2008

RELATED: Gas prices jump 14 cents across Greater Victoria overnight

The expected turbulent year ahead follows the pattern of major price swings seen on both the equities and futures markets in the final weeks of 2018 as energy traders look global markets for clues of an economic rebound or continued slowdown in light stemming from concerns over a looming trade war between the U.S. and China trade, Brexit, the status of global crude supplies and overall demand for oil products. For Canada specifically, a weaker Loonie, which now stands 10 cents weaker than the U.S. greenback and Ottawa imposing a 5 cent per litre carbon tax on April 1 point to higher than usual pump prices for the spring and summer driving season as pipeline constraints and taxes continue to widen the spread between the price of oil and pump prices.

RELATED: Tax hikes across B.C. set for 2019

RELATED: Bills to grow bigger in 2019 for B.C. residents

“With carbon taxes set to begin or increase in 8 of 10 provinces, the average hike of 5 cents per litre by April 1, combined with a limping Loonie, will almost certainly force up the cost of filling your tank, just in time for the summer driving season and switchover to more expensive summer gasoline,” said McTeague. “The tax increases will be particularly noticeable in Vancouver which will displace Montreal as the highest taxed jurisdiction on fuel in North America.”

Although fuel prices are likely to reach 2018 levels and at times reach above seasonal highs, extra attention will need to be given to the ongoing premium of diesel prices, which are not expected to fall notably for several years. Overall, fuel prices in 2019 could well turn out to be more expensive than any year since 2014, helped in no small part by an increase in gas taxes and currency challenges.

GasBuddy.com shares crowdsourced, real-time fuel prices at more than 150,000 gas station convenience stores in the U.S., Canada and Australia.



c.vanreeuwyk@blackpress.ca

Like us on Facebook and follow us on Twitter

Just Posted

Grand Forks mulls in-kind options to support flood buyout residents

Staff estimate a $6.6 million difference between pre and post-flood value for Grand Forks buyouts

Boundary District Arts Council folds amid financial questions

The last board took over in November and could not find receipts for $8,000 in spending

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Annual Columbia Basin Culture tour coming up Aug 10 and 11

There are locations across the region participating

PLACE NAMES: Grand Forks neighbourhoods, Part 1

Manlys and Ruckles key to Grand Forks townsite

Joaquin ‘El Chapo’ Guzman sentenced to life in prison

Experts say he will likely wind up at the federal government’s Supermax prison in Florence, Colorado

Olympic softball qualifier gets $150K boost from provincial government

2019 Americas Qualifier to be held in Surrey from Aug. 25-Sept. 1

Gas price inquiry questions Trans Mountain capacity, company denies collusion

The first of up to four days of oral hearings in the inquiry continue in Vancouver

‘Benzos’ and fentanyl a deadly cocktail causing a growing concern on B.C. streets

Overdoses caused by benzodiazepines can’t be reversed with opioid-overdose antidote naloxone

Will you be celebrating national hotdog day with any of these crazy flavours?

The popularity of hotdogs spans generations, cultures

Former home of accused Penticton shooter vandalized

Ex-wife of man who is accused of murdering four people had her house vandalized

Survivor of near-drowning in B.C. lake viewing life through new eyes

“If I died that day, the baby wouldn’t know his dad,” said 31-year-old Mariano Santander-Melo.

‘Beyond the call’: Teen in police custody gets birthday surprise by B.C. Mountie

Unusual celebration started when Staff Sgt. Paul Vadik went to visit the teen in his Coquitlam cell

Thunderstorms forecast across B.C.

Environment Canada has issued a thunderstorm watch for B.C.’s central Interior

Most Read