Gas prices seen in Kelowna on Feb. 18, 2020. (Phil McLachlan – Kelowna Capital News)

Gas prices seen in Kelowna on Feb. 18, 2020. (Phil McLachlan – Kelowna Capital News)

Gas prices in parts of B.C. could reach $1.70 per litre by summer, analyst predicts

This week’s wholesale increase was caused by the deep cold in Texas and central U.S.

Drivers can expect a jump in gasoline prices this week, thanks to a five cent increase from wholesalers, analyst Dan McTeague said.

He expects most cities in B.C. to see a two-cent rise, but central B.C. could get more of a hit. Retailers there have been skimping their own margins to compete, but “some have now thrown in the towel and decided to increase by 10 cents,” he said.

This week’s wholesale increase was caused by the deep cold in Texas and central U.S., but McTeague sees market forces pushing prices higher mid-year.

By summer, McTeague estimates gas could be as high as $1.70-per-litre in the Lower Mainland, and $1.38-per-litre elsewhere in the province.

There are three factors leading to his prediction: summer driving demand, decreased global production and increased carbon prices.

Last year as the COVID-19 interrupted the world, producers got left with barrels selling at minus numbers and nowhere to store them to wait out the market drop. That’s made producers shy, and financiers hesitant to fund oil plays, McTeague said.

The NDP also has a scheduled carbon tax increase, which was postponed in 2020 due to COVID-19. Once things start getting back to normal, McTeague expects the government to double up the planned increase with two years-worth in one, for a total of 2.5 cents-per-litre.

B.C. is affected by two key oil markets. The Lower Mainland and Vancouver Island is fueled by the Pacific Northwest market, while the rest B.C. is supplied from the Trans Mountain Pipeline which is priced in the Chicago Spot Market.

RELATED: Canada Energy Regulator projects there may be no need for Trans Mountain expansion

zoe.ducklow@blackpress.ca


gas prices

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

Just Posted

Robert Schram, here seen in January 2016, died Saturday, according to a friend. (Black Press Media file photo)
Sidney, Saanich Peninsula mourn the death of Mr. Beads

Bead artist Robert Schram was a familiar, well-loved figure in Sidney and beyond

Cathy Armstrong, executive director of the Land Conservancy, Paul Nursey CEO of Destination Greater Victoria and Saanich Coun. Susan Brice helped to kick off the annual Greater Victoria Flower Count at Abkhazi Garden Monday. This year, the flower count is less about rubbing the region’s weather in the rest of Canada’ faces, and more about extending a bouquet of compassion and love. (Nina Grossman/News Staff)
2021 Greater Victoria Flower Count sows seeds of compassion

Friendly flower count competition runs from March 3 to 10

Paul Lewis is the Goldstream Gazette’s 2021 Local Hero as Arts Advocate of the Year. (Don Denton/Black Press Media)
West Shore driftwood sculptor inspired by Esquimalt Lagoon

Paul Lewis is the 2021 Arts Advocate of the Year

Langley resident Carrie MacKay shared a video showing how stairs are a challenge after spending weeks in hospital battling COVID-19 (Special to Langley Advance Times)
VIDEO: Stairs a challenge for B.C. woman who chronicled COVID-19 battle

‘I can now walk for six (to) 10 minutes a day’

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation, May 8, 2020. (B.C. government photo)
B.C.’s weekend COVID-19 cases: 532 Saturday, 508 Sunday, 438 Monday

Fraser Health still has most, eight more coronavirus deaths

B.C. Attorney General David Eby speaks in the legislature, Dec. 7, 2020. Eby was given responsibility for housing after the October 2020 provincial election. (Hansard TV)
B.C. extends COVID-19 rent freeze again, to the end of 2021

‘Renoviction’ rules tightened, rent capped to inflation in 2022

Face mask hangs from a rear-view mirror. (Black Press image)
B.C. CDC unveils guide on how to carpool during the pandemic

Wearing masks, keeping windows open key to slowing the spread of COVID-19

Churches, including Langley’s Riverside Calvary Church, are challenging the regulations barring them from holding in-person worship services during COVID-19. (Langley Advance Times file)
Det. Sgt. Jim Callender. (Hamilton Police Service screenshot)
B.C. man dead, woman seriously injured after shooting in Hamilton, Ont.

The man was in the process of moving to the greater Toronto area, police say

Police have identified the vehicle involved in the Feb. 14 hit-and-run in Chemainus and are continuing to investigate. (Black Press Media files)
Police seize and identify suspect vehicle in hit-and-run

Investigation into death expected to be lengthy and involved

(Black Press file photo)
Child in critical condition, homicide investigators probe incident near Agassiz

The child was transported to hospital but is not expected to survive

Sewage plant in Lower Mainland, operated by Metro Vancouver. (Metro Vancouver screenshot)
‘Poop tracker’ launches as researchers test Lower Mainland sewage water for COVID-19

‘Studying the virus in wastewater allows researchers to look at an entire population…’

Most Read