(Black Press file photo)

(Black Press file photo)

Refinery explosion could cause gas price spike in B.C.

Blast could cause two cent per litre increase in Victoria, Vancouver and Lower Mainland

A large explosion and fire at an oil refinery in New Brunswick could lead to higher gas prices in British Columbia.

The massive blast shook the historic port city of Saint John on Monday, sending flames and black smoke high into the sky but causing only four minor injuries.

Officials say the cause of the explosion was a malfunction in the refinery’s diesel treating unit, where sulphur is removed from diesel fuel. There were as many as 3,000 workers at the refinery Monday.

READ MORE: Massive blast at oil refinery in New Brunswick

While half of the refinery’s daily production goes to the U.S. northeast, industry observers expect the anticipated closure could affect gas prices right across the country.

“A fire that caused undisclosed damage to the Irving refinery in Saint John, New Brunswick, Canada’s largest, has not yet been fully quantified by markets and comes in a period of lower demand and stronger inventories generally in the U.S. northeast,” said Dan McTeague, senior petroleum analyst at GasBuddy.

“Nevertheless, a more thorough disclosure of damage to the refinery could yield concerns for supply and raise market prices should the plant’s 330,000 barrel a day output be curtailed for an extended period of time. Upside momentum in petroleum prices seen last week could continue into this week with a mix of issues including Hurricane Michael in the Gulf Coast, growing concern for supply constraints ahead of the U.S. embargo on Iran and ongoing issues with Venezuela and Nigeria. Combined with a weaker Loonie due to the effects of pipeline constraints, motorists should look to higher pump prices generally in the weeks ahead.”

RELATED: Gas prices in Victoria jump 10 cents overnight

McTeague expects motorists to see another two cent per litre increase in Victoria, Vancouver and the Lower Mainland.

Gas prices in Victoria spiked 10 cents last week, due in part to slimmer retail margins and a shortage of gas supply in the Pacific Northwest.

The average gas price in B.C. is 140.8 c/l, which is more than 10 cents above the national average of 128. 4.

– With files from the Canadian Press



ragnar.haagen@bpdigital.ca

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nick Warmerdam and his dog Diesel are inviting locals to check out the Lakeland Farm U-pick Flower Farm this spring. (Ben Lypka/Abbotsford News)
VIDEO & SLIDESHOW: Abbotsford’s Lakeland Flowers opens for spring

Tulip farm attraction opened on April 14, open to the public daily seven days a week

A protester holds a sign on Yale Road near Hodgins Avenue during the Fraser Valley Freedom Rally on Saturday, April 3, 2021. (Jenna Hauck/ Chilliwack Progress)
OPINION: Freedom, yes, but don’t forget about responsibility

‘Freedom makes a huge requirement of every human being’

A man holds a child while speaking with RCMP following an erratic driving incident on Highway 1 in Chilliwack on Friday, April 16, 2021. The child and a woman (but not this man) were in this Jeep Grand Cherokee which hit a barrier and a parked car on Highway 1 and continued driving. The vehicle finally exited the highway at Yale Road West and came to a stop. (Jenna Hauck/ Chilliwack Progress)
Video captures woman driving erratically with child after hitting barrier, car on Hwy 1 in Chilliwack

Smoke seen coming from SUV as it continues to travel eastbound of shoulder of highway

An undated picture of the Hope Station House. (Photo/Save The Hope Station House)
Hope council must consider all options for Station House: B.C. Ombudsperson

Investigation ‘revealed flaws in District’s process,’ statement said

April 16, 2021 is the 130th anniversary of the first edition of The Chilliwack Progress, the oldest community newspaper in British Columbia. The first four-page Progress was printed on April 16, 1891.
PHOTO GALLERY: Today is the 130th anniversary of The Chilliwack Progress

British Columbia’s oldest community newspaper’s first edition was April 16, 1891

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: B.C. lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
RCMP intercept vehicle fleeing with infant taken from Kamloops hospital

The baby was at the hospital receiving life-saving care

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Former Pitt Meadows city councillor David Murray was convicted of sex assault, and is now being sued by the victim. (files)
Former Pitt Meadows city councillor sued for sex assault

David Murray was convicted in 2017 of sexually assaulting a teen 25 years earlier

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after making comments to a harm reduction advocate Sunday, April 11. (Screen grab)
VIDEO: Vancouver officer convicted of uttering threats under watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to a harm reduction advocate

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

Premier John Horgan receives a dose of the AstraZeneca COVID-19 vaccine at the pharmacy in James Bay Thrifty’s Foods in Victoria, B.C., on Friday, April 16, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. Premier John Horgan gets AstraZeneca shot, encourages others

27% of residents in B.C. have now been vaccinated against COVID-19

The Nautical Dog Cafe at Skaha marina is getting its patio ready in hopes Mother Nature will provide where provincial restrictions have taken away indoor dining. (Facebook)
‘A lot of instability’: B.C. restaurants in layoff limbo

As COVID-19 cases stay high, restaurants in British Columbia are closed to indoor dining

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question during a news conference on Parliament Hill in Ottawa, Tuesday, Aug. 18, 2020. THE CANADIAN PRESS/Adrian Wyld
Expectations high as Trudeau Liberals get ready to unveil first pandemic budget

The Liberals will look to thread an economic needle with Monday’s budget

Most Read