Gas prices to rise by 10 per cent, expert predicts


mentalfloss
#1
Gas prices to rise by 10 per cent, expert predicts

Closing refineries, problems in Europe and in the Arab world, and moody markets mean Canadian motorists can expect to pay high prices right into the summer, says one expert.

This week Montreal drivers were unexpectedly walloped, with prices rising 14 cents overnight -- from roughly $1.30 per litre on Monday to $1.44 on Tuesday.

And while prices varied widely across the country on Wednesday, from $1.41 per litre in Vancouver to $1.07 in Edmonton and $1.30 in Toronto, one thing appeared to be certain -- prices everywhere were on the rise.

"I've been saying (expect) a 12 to 15 per cent increase by the end of April. It's already gone up 3 per cent, so now I'm saying add 10 per cent to your pump prices today and that's what it will be by the end of April," oil industry analyst Roger McKnight told CTV's Canada AM.

"Normally gas prices fall off at the end of May when May 24 weekend is finished but I can't see that happening this year. I think it's going to stay right through to the middle of July."

That means motorists in Toronto will be paying $1.43 per litre by mid-summer, he said.

McKnight said a number of factors are driving up the price of fuel and each city is affected by a different combination of issues.

Montreal, for example, is closely tied to prices in the U.S. and particularly the wholesale price of fuel in Albany, N.Y. where rates have been creeping up. That's largely due to the fact the Eastern U.S. is losing three refineries in coming months. A fourth refinery in the Virgin Islands, which supplies New York harbour with gasoline, is also shutting down.

"That takes one million barrels of production out of the system so there is a lot of speculation that's going to affect supply when we get into the driving season," McKnight said.

The Montreal market is also "very moody," McKnight said, with only two dominant suppliers taking turns "restoring the market -- which means jacking it up."

Some parts of Western Canada are experiencing a similar tightening of the supply lines. Vancouver receives much of its fuel from nearby Washington State, where a major refinery caught fire on Feb. 17. That fire shut down the refinery, removing an additional 225,000 barrels of oil per day from the system.

The rules of supply and demand mean that as the fuel availability decreases, prices at the pump go up.

However in Edmonton, prices on Wednesday hovered at just $1.07 per litre. McKnight said Alberta is often sheltered from skyrocketing prices around the rest of the country, because the province has the lowest tax structure in the country.

European refinery troubles are another major factor affecting the Canadian and U.S. markets, McKnight said. The U.S. imports one million barrels of gasoline per day from Europe, where a major supplier is shutting down four refineries due to the high cost of Brent Sea crude needed to power the refineries.

Those rising crude costs, McKnight said, are largely being inflated due to tensions in Iran and Syria – major oil exporting nations currently experiencing political instability that has affected their ability to export their product.

Following are Wednesday's average gas prices in cities across Canada, according to Tomorrowsgaspricestoday.com:

  • Edmonton: $1.07 (down three cents)
  • Vancouver $1.41 (up .8 cents)
  • Saskatoon: $1.23 (no change)
  • Winnipeg: $1.18 (no change)
  • Thunder Bay: $1.28 (no change)
  • Toronto: $1.30 (down .9 cents)
  • Montreal $1.41 (down 2.5 cents)

Across New Brunswick on Wednesday, according to gasbuddy.com, prices averaged $1.31 per litre. In Nova Scotia prices hovered at around $1.38 per litre. In Newfoundland, gas prices were 1.39 cents per litre, while prices in P.E.I. were $1.25 on average on Wednesday.

http://ottawa.ctv.ca/servlet/an/loca...hub=OttawaHome
 
petros
+1
#2  Top Rated Post
This happens ever spring when the Ag Sector fires up the tractors. You don't need to climb a mountain to speak to the Petroleum Oracle of Delphi to know this. It's an annual event.
 
B00Mer
#3
I remember right after 9/11 the gas prices in the USA was around $1 a gallon, now it's upwards of $4 a gallon.

I was at the DFW Airport during the attacks.. God.




Time to buy a Chevy Volt @ 230 MPG



https://secure.myvolt.com/en_CA/web/...t&lang=english (external - login to view)
Last edited by B00Mer; Feb 29th, 2012 at 11:27 AM..
 
petros
#4


Is there room in the back for gasoline generator so I can make it home?
 
JLM
+1
#5
Could be a good thing - get people out of their cars and getting some exercise and curtailing pollution.
 
petros
#6
Quote: Originally Posted by JLMView Post

Could be a good thing - get people out of their cars and getting some exercise and curtailing pollution.

That's great if you live in a small city.
 
B00Mer
+1
#7
Quote: Originally Posted by JLMView Post

Could be a good thing - get people out of their cars and getting some exercise and curtailing pollution.

oh oh! An eco nut. lol

[youtube]Gtnu9b701RE[/youtube]
 
JLM
+1
#8
Quote: Originally Posted by petrosView Post

That's great if you live in a small city.

In a big city walk to the bus!
 
petros
+1
#9
Quote: Originally Posted by JLMView Post

In a big city walk to the bus!

Ever lugged two weeks worth of groceries 10 km by bus?
 
skookumchuck
#10
I have difficulty believing that i should spend an extra 15 grand to save approx 2 bucks a day (after factoring in depreciation and charging cost) then charging for 12 hours before doing it again.
I think you could rebuild an efficient diesel engine for the price of battery replacement after what is estimated at 100 thou ish K, then get another 3-4 hundred thou K, but i would not mind being shown real proof that my calcs are off.

Will be no problem as soon as the nanny staters outlaw rural life and **** in their own nest. They seem to be chipping away at it. We were to be baling hay today but a group of protestors showed up, outraged at the cruelty to mice.......
 
JLM
#11
Quote: Originally Posted by petrosView Post

Ever lugged two weeks worth of groceries 10 km by bus?

You can hire a taxi once every two weeks for cheaper than you can drive your car and insure it. Besides I didn't suggest giving up driving altogether!
 
lone wolf
#12
Quote: Originally Posted by skookumchuckView Post

We were to be baling hay today but a group of protestors showed up, outraged at the cruelty to mice.......

Now THAT ... I would love to see.

In Ontario, we don't get to bale hay in February
 
skookumchuck
#13
Quote: Originally Posted by lone wolfView Post

Now THAT ... I would love to see.

In Ontario, we don't get to bale hay in February

Being a bit facetious........
 
MHz
#14
Who are they trying to kid, it is a yearly increase just like always just a little earlier as the 'reasons' are handy right now.

Quote: Originally Posted by skookumchuckView Post

Will be no problem as soon as the nanny staters outlaw rural life and **** in their own nest. They seem to be chipping away at it. We were to be baling hay today but a group of protestors showed up, outraged at the cruelty to mice.......

Get a bus-load of cats from the SPCA and say you are giving them a free lunch.

Quote: Originally Posted by petrosView Post



Is there room in the back for gasoline generator so I can make it home?

The gen sets should be in a tow behind package, hook it up for long distance travel and leave it off for the short city drives.

An e-bike (trike) would be able to pack that much but at a top speed of 20K and winters would still suck.

This is the best I could find so far on the 'regular hikes' that don't need a crisis behind it to happen as the prices don't fall after.
8. April - May 2009 - Canada (external - login to view)
 
lone wolf
#15
Wahnapitea's right on the mark.... Last night it was a buck twenty-four and today a buck thirty-six.
 
MHz
#16
Red Deer is still around $1.06, that's a pretty big gap, I would bet ours goes up rather than yours coming down.
 
skookumchuck
#17
Quote: Originally Posted by MHzView Post

Red Deer is still around $1.06, that's a pretty big gap, I would bet ours goes up rather than yours coming down.

And IRC, RedneckDeer was always higher than most other places in Central Alberta.
 
MHz
#18
So are the wages, what's your point?
 
JLM
#19
Down 3 cents a litre here today ................Yippee Aye yay!
 
MHz
#20
Quote: Originally Posted by JLMView Post

Down 3 cents a litre here today ................Yippee Aye yay!

Save the cheers for when it is down to $0.03/ltr.
 
tay
#21
Check out some of the pricing highs and lows on the dimensional map.



Click on map to expand when you click on the link...........


Global Gouging: A Survey of Fuel Prices Around the World - Feature - Car and Driver | Car and Driver Blog (external - login to view)






 
petros
#22
Lowest is 98.9 here.
 
JLM
#23
Quote: Originally Posted by petrosView Post

Lowest is 98.9 here.


$1.159 in Vernon now, lowest in years. Good f**king trick eh, since everyone is broke after Xmas!.
 
petros
#24
Try farming. Every spring diesel jumps 10 cents.
 
JLM
+1
#25
Quote: Originally Posted by petrosView Post

Try farming. Every spring diesel jumps 10 cents.

I already do, my "farm" is 10' X 50' and I grow the best carrots and Swiss chard in the Okanagan. -
 
Cliffy
#26
Funny the OP says some expert predicts gas prices will rise. I'm reminded of the head of the Fed. Every time he says the stock exchange will rise or fall, it always does. Makes it look like a self fulfilling prophesy but he can predict it because he controls it. Same with the gas prices. It doesn't take a genius to figure gas will go up certain times of the year and fall in another. The media makes it sound like these guys are prophets when basically all they are saying is "we're going to screw you soon."
 
petros
#27
They also say seasonal shut downs are the reason for increases for spring increases but they produce six months ahead for expected increasing in consumption and loss of production. They cook all winter long and stockpile for summer.

Quote: Originally Posted by JLMView Post

I already do, my "farm" is 10' X 50' and I grow the best carrots and Swiss chard in the Okanagan. -

I could seed that with grain in under a second. One pass nothing else until harvest. That is around 1.2% of an acre and you'd get about 0.6 of a bushel. Almost $8
Last edited by petros; Jan 3rd, 2013 at 07:54 AM..
 
JLM
#28
Quote: Originally Posted by petrosView Post

They also say seasonal shut downs are the reason for increases for spring increases but they produce six months ahead for expected increasing in consumption and loss of production. They cook all winter long and stockpile for summer.


I could seed that with grain in under a second. One pass nothing else until harvest. That is around 1.2% of an acre and you'd get about 0.6 of a bushel. Almost $8

I have lots of weeds that can reseed themselves in under a second, it seems!
 
petros
#29
Quote: Originally Posted by JLMView Post

I have lots of weeds that can reseed themselves in under a second, it seems!

Get rid of your bird feeders.
 
Locutus
#30
123.5 in TO.
 

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