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

Hang glider pilot rescued from Pincushion Mountain

Pilot was able to help guide rescue crews to her location

Town of Oliver receives award for annual financial report

The town’s finance department is being honoured by the GFOA

Penticton Hospital Auxiliary donates to mental health

Canadian Mental Health Association received a $1,000 donation from the Penticton Hospital Auxiliary

Balmy winter forecast for Okanagan-Shuswap

El Niño is anticipated to develop later this winter

Grants for Okanagan youth initiatives available

Project funding of up to $2,000 available for the South and Central Okanagan

Video: New Penticton studio is a playground for creative types

We toured Penticton’s newest creator space

Razor burn: Gillette ad stirs online uproar

A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash

Hang glider pilot rescued from Pincushion Mountain

Pilot was able to help guide rescue crews to her location

Thompson Okanagan potential hot spot for lung-cancer-causing gas

Kelowna public forum addresses excessive radon radiation exposure dangers

Feds poised to bolster RCMP accountability with external watchdog

Long-anticipated move is the latest attempt at rebuilding the force following years of sagging morale

Canada needs a digital ID system, bankers association says

The Department of Finance last week officially launched its public consultation on the merits of open banking

Indigenous energy summit includes session on pipeline ownership options

Steven Saddleback of the Indian Resource Council says a session will feature presentations on financing models

Japanese grand champion Kisenosato retires from sumo

The 32-year-old Kisenosato was the first Japanese-born wrestler in 19 years to gain promotion to sumo’s highest rank

UPDATE: Accused B.C. high school killer found fit to stand trial

Gabriel Klein is accused in the 2016 stabbing death of Letisha Reimer at Abbotsford Senior Secondary

Most Read