TapForMobile

Gas prices on the rise in Saskatchewan due to Hurricane Harvey


It appears New Brunswickers are in store for a major jump in gas prices - perhaps by nine cents a litre by midnight tonight.

Gas Buddy Senior Petroleum Analyst Dan McTeague tweeted out on Friday that oil production is down roughly 30 per cent in the United States because of the storm.

Gasbuddy.com reported a two-cent hike in the average Canadian price on Friday to nearly $1.18 per litre.

This recent soar in gas prices is caused by the devastation to the Gulf Coast caused by Hurricane Harvey, which interrupted supplies to the East Coast. "And with that they'll be able to feed product into the Colonial Pipeline and restore inventories in the northeastern US", said Michael Ervin, senior vice-president with Kent Group Ltd.

He said any fluctuations in retail prices, which were hovering at either 99.9 cents or 107.9 cents at many local outlets on Friday, would be as a result of gas stations adjusting their retail margins.

For the second time in a week, gas prices in Regina have spiked.


In Western Canada this won't affect gas prices as much.

"We may see even higher prices Sunday and into next week", he said.

Some analysts have speculated that it could take months for the fuel market to return to normal, based on records from previous hurricane outages, but Ervin said it's more likely to be a few weeks as it appears there's been less damage to refineries and pipelines. The average price in Montreal was expected to climb as high as $1.42 a litre at some point over the Labour Day long weekend.

"If we keep our prices low, that shortage will morph into wholesalers driving north of the border under free trade - and picking up dozens of tankers in gasoline and that will eventually see a run in our own supplies", he said.

In Vancouver, McKnight predicted little change on the weekend but McTeague says he expects a five-cent jump on Saturday.

Related Articles

Comments