Gas prices seen in Kelowna on Feb. 18, 2020. (Phil McLachlan – Kelowna Capital News)

Gas prices seen in Kelowna on Feb. 18, 2020. (Phil McLachlan – Kelowna Capital News)

Gas prices in parts of B.C. could reach $1.70 per litre by summer, analyst predicts

This week’s wholesale increase was caused by the deep cold in Texas and central U.S.

Drivers can expect a jump in gasoline prices this week, thanks to a five cent increase from wholesalers, analyst Dan McTeague said.

He expects most cities in B.C. to see a two-cent rise, but central B.C. could get more of a hit. Retailers there have been skimping their own margins to compete, but “some have now thrown in the towel and decided to increase by 10 cents,” he said.

This week’s wholesale increase was caused by the deep cold in Texas and central U.S., but McTeague sees market forces pushing prices higher mid-year.

By summer, McTeague estimates gas could be as high as $1.70-per-litre in the Lower Mainland, and $1.38-per-litre elsewhere in the province.

There are three factors leading to his prediction: summer driving demand, decreased global production and increased carbon prices.

Last year as the COVID-19 interrupted the world, producers got left with barrels selling at minus numbers and nowhere to store them to wait out the market drop. That’s made producers shy, and financiers hesitant to fund oil plays, McTeague said.

The NDP also has a scheduled carbon tax increase, which was postponed in 2020 due to COVID-19. Once things start getting back to normal, McTeague expects the government to double up the planned increase with two years-worth in one, for a total of 2.5 cents-per-litre.

B.C. is affected by two key oil markets. The Lower Mainland and Vancouver Island is fueled by the Pacific Northwest market, while the rest B.C. is supplied from the Trans Mountain Pipeline which is priced in the Chicago Spot Market.

RELATED: Canada Energy Regulator projects there may be no need for Trans Mountain expansion

zoe.ducklow@blackpress.ca


Gas prices

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP. (Phil McLachlan/Capital News)
Suspect arrested after armed robbery in downtown Castlegar

Victim was allegedly threatened with knife and bear spray

Columbia Avenue Redevelopment — Phase 2 will begin in February. Image: City of Castlegar
Construction on the Columbia Avenue Redevelopment Project beginning March 1

Crews will be clearing brush and trees and removing asphalt

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Paul Chiasson
39 new cases of COVID-19 in Interior Health region

The total number of cases in the region since the pandemic began is now at 7,334

(file photo)
Nomination packages available for Castlegar byelection

The mayor’s seat and one council seat will be on the ballot

The Skinny Genes Foundation is raising awareness and funds for a rare genetic disorder that claimed both his father and uncle.
NHL players, local businesses help Kootenay man raise funds and awareness for rare genetic disease

Signed NHL jerseys and local business donations up for auction in Skinny Genes Foundation fundraiser

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

An investigation is underway after a man was shot and killed by Tofino RCMP in Opitsaht. (Black Press Media file photo)
Man shot and killed by RCMP near Tofino, police watchdog investigating

Investigation underway by Independent Investigations Office of British Columbia.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Supreme Court in Vancouver on Tuesday December 11, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C.’s compromise on in-person worship at three churches called ‘absolutely unacceptable’

Would allow outdoor services of 25 or less by Langley, Abbotsford and Chilliwack churches

Baldy Mountain Resort was shut down on Saturday after a fatal workplace accident. (Baldy Mountain picture)
Jasmine and Gwen Donaldson are part of the CAT team working to reduce stigma for marginalized groups in Campbell River. Photo by Marc Kitteringham, Campbell River Mirror
Jasmine’s story: Stigma can be the hardest hurdle for those overcoming addiction

Recovering B.C. addict says welcome, connection and community key for rebuilding after drug habit

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Most Read