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

Winter Solstice is coming, to Penhenge on Dec. 21

The annual gathering at the top of Munson Mountain celebrates the longest night of the year.

Vee’s go one-and-one in weekend games against Vernon

The Vees took a 0-2 loss on Friday in Vernon and came back to Penticton for a 4-1 win on Saturday.

Old Christmas card has ties to Summerland agriculture

Card was sent by former director of Summerland Research Station

Auntie Says: Be thoughtful of others around this time of year

Christmas and holidays in general can serve as painful reminders of loss for some

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

RCMP officer volunteers as designated driver

Princeton’s two largest employers ensure safe rides for Christmas parties

Pacioretty scores 2, Golden Knights top Canucks 6-3

Vegas goalie Fleury gets win No. 452

In Photos: CP Rail Holiday Train lights up the Shuswap

The stop on the train’s Canada-wide journey came with a $5,500 donation to local food bank.

Penticton Vees earn split with Vernon Vipers

Vees victorious 4-1 at home in back end of home-and-home series

B.C. VIEWS: Hunger does not end with the season

Despite innovations in food distribution, the need is still there in B.C. communities

Kelowna RCMP officer suspended after allegedly sexting assault victim

RCMP confirm investigation but hold back details

Legendary primatologist coming to Okanagan

Dame Jane Goodall, founder of the Jane Goodall Institute, will present in Vernon Tuesday, March 24

Frosty will have to pay rent to stay on Okanagan sidewalk next Christmas

Vernon Teach and Learn allowed to keep Frosty up, but will need a permit come January 1

Most Read