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

Chilliwack organ transplant recipients thank hospital staff during Operation Popcorn

Two double-lung recipients helped deliver large boxes of popcorn to say thanks to doctors and nurses

Chilliwack mom gives back to Royal Columbian Hospital NICU with Christmas stocking drive

Ashley Durance is paying it forward to other families and their babies following daughter’s NICU stay

Wild Fishmas event in Chilliwack Sunday for salmon defence

It’s a fish-focused festive fundraiser Dec. 8 at the UFV Indigenous Student Gathering Place

Threats to the Fraser River at a ‘new zenith,’ says river conservationist

The ‘Heart of the Fraser’ should be deemed ecologically significant according to ORC statement

Fraser Valley Regional District administration/government costs set to rise by 18%

Mosquito control and fire dispatch costs also set for increase

VIDEO: Federal Liberals’ throne speech welcomes opposition’s ideas

Trudeau will need NDP or Bloc support to pass legislation and survive confidence votes

VIDEO: John Lennon’s iconic Rolls Royce rolls into Vancouver Island college for checkup

Royal BC Museum, Camosun College and Coachwerks Restorations come together to care for car

VIDEO: Rockslide closes part of Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Petition calls for appeal of ex-Burns Lake mayor’s sentence for sex assault

Prosecution service says Luke Strimbold’s case is under review

Northwest B.C. wildlife shelter rescues particularly tiny bear cub

Shelter co-founder says the cub weighs less than a third of what it should at this time of year

BC firefighters to help battle Australian bushfires

Canada sent 22 people, including 7 from B.C.

B.C. NDP touts the end of MSP premiums

Horgan, James held news conference to reiterate that people will get their last bill this month

Illicit drug deaths down, but B.C. coroner says thousands still overdose

Chief coroner Life Lapointe says province’s drug supply remains unpredictable

One of B.C’s last surviving strip clubs baring all again for Christmas charity

25th annual event is Sunday and raises money for the Maple Ridge-Pitt Meadows Christmas Hamper Society.

Most Read