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

Terrace Search and Rescue headquarters gets $100K boost from Prince Rupert Port Authority

Investment to help grow regional response capacity in Northwest B.C.

Northern Sea Wolf Wednesday sailing delayed

Adverse weather will lead to a late night arrival for passengers

Molly Wickham endorses Skeena-Bulkley Valley Green candidate Mike Sawyer

In July, Wickham filed a lawsuit against CGL over the destruction of the Gidimt’en checkpoint camp

B.C.’s rural paramedic program expands, with home support

Advanced care ambulance staff added for six communities

BC Ferries sees steady traffic of post-Thanksgiving weekend travellers

Ferries filling up fast, sailing waits at some terminals

‘Save the kids!’ Dorian survivor tells the harrowing story of his Canadian wife’s death

Family held a funeral and placed Alishia Liolli’s remains in a niche at a cemetery in Windsor, Ont.

Okanagan woman, 91, votes at advance polls despite broken hip, shoulder and wrist

Angela Maynard has voted in almost every election during her lifetime

Heiltsuk Nation open first Big House in 120 years in northern B.C.

Opening means the community now has an appropriate space for spiritual and ceremonial events

Singh says NDP would form coalition with the Liberals to stop Tories

Singh was in a Liberal-held riding Sunday afternoon in Surrey where he was pressed about his post-election intentions

‘My heart goes out to the mother’: B.C. dad reacts to stabbing death of Ontario boy

Carson Crimeni, who was also 14, was bullied relentlessly, his dad says

BC Ferries filling up fast with post-Thanksgiving weekend travellers

Monday anticipated to be busiest day of the weekend

The one with the ‘Friends’ photoshoot: Kelowna group recreates TV show intro

A friend’s departure prompted them to create something that really says, “I’ll be there for you”

Most Read