Many stations in Metro Vancouver were charging nearly $2.35 a litre Tuesday, but they are expected to climb again.
Metro Vancouver drivers, who already pay some of the highest fuel prices in the country, can expect more woes this summer as prices continue to set new records.
Patrick De Haan, a petroleum analyst with GasBuddy, said some stations in the region were charging nearly $2.35 a litre on Tuesday, and he added it could go higher.
A record was set in Vancouver on Sunday with some stations charging nearly $2.37 a litre.
“We are setting records almost every day…The price of gas is just surging here and a lot of that probably has to do with gasoline inventories which continue to decline,” De Haan said on Tuesday.
Last week, the U.S. Department of Energy reported that gasoline inventories in the U.S. had declined to their lowest seasonal level in the better part of a decade, De Haan said.
“So that combined with the fact that we’ve seen various refineries shut down over the last few years —it’s become to a point where there’s simply not enough refining capacity to meet that demand. And part of that is due to COVID. And part of it is due to Russia’s war on Ukraine.”
De Haan’s concern is that there could be an issue at one of the refineries in Washington State. And if one of those refineries shuts down prices could soar much higher.
“It’s not out of the realm of possibility to think that eventually we could get closer to $2.50 a litre,” he said, adding all it would take is a disaster like last year’s heat wave to shut down production.
“If there’s if there’s anything that that disrupts that flow we we could we could see prices going even higher,” he said.
For now, he said the price of gasoline was slightly down on the stock market, so there could be a bit of breathing room over the next couple of days.
“I’m hopeful that we’ll be able to make it through the rest of the week without seeing another massive spike and that things may start slowing down a little bit until the next chapter is written,” he said.
Elsewhere in Canada, Montreal posted gas prices on the weekend just under $2.24 a litre, St. John’s hit $2.23 and Toronto had nearly $2.15 a litre.
Gas prices have risen rapidly over the last year as a tight global supply has been worsened by the Russian invasion of Ukraine.
Prices have also been pushed higher by strong demand as the economy reopens and a busy travel season gets underway.
—with a file from The Canadian Press