Gasoline Prices: No Short-Term Relief, Expert Says

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Gasoline prices: no short-term respite, expert says

Regular gasoline prices are 239.9 cents per liter at select Metro Vancouver gas stations (September 29, 2022).

Regular gasoline prices had a strong Thursday morning in Greater Vancouver, hitting an all-time high of $2.40 per liter at select gas stations. The average price in British Columbia is $2.12, and $1.68, in Canada, according to the GasBuddy site.

Price is up 0.63 $ compared to the 2021 average, and $0.25 compared to the August average, again according to the GasBuddy site.

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It would be particularly high due to an anomalous situation in western North America, says Werner Antweiler, an economist and natural resources specialist at the University of British Columbia.

It's not coming from world markets, where the price is currently falling, he explains. What we're seeing right now [in Metro Vancouver] is a very abnormal spike in refinery profit margins because several of them have unexpectedly shut down production, in some cases for maintenance.

Werner Antweiler notes that refineries in Edmonton and Washington state shut down production to do maintenance in September when they normally do in August when people get busy. travel less for work.

On the other hand, a major fire broke out at a refinery in Ohio, which led to its closure . Problems have also been reported at refineries in California.

That's a lot of lost production […] when production was already very limited, emphasizes Werner Antweiler. All of this leads to higher prices at the pump.

Vijay Muralidharan, managing director of R Cube Consulting, a petroleum products market analysis and forecasting firm, says this drop in production comes on top of demand that hasn't plummeted as it normally does in early fall, as the weather is still nice this year and people are still hitting the road.

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“We expect the maintenance period at the refineries to end in the first or second week of October. So, yes, I'm afraid prices will stay where they are for the next few weeks.

—Vijay Muralidharan, Managing Director, R Cube Consulting

The gas price expert adds that many factors come into play when it comes to the future of gas prices in the country. Under the new reality, we expect the price of regular gasoline to be between $1.50 and $1.80 per litre, and that's if taxes don't go up and policies Government regulations don't change overnight.

He notes that, because of taxes, Vancouverites pay an average of 10 cents more per liter than elsewhere in the country. In Canada, the average is 50 cents tax per liter of gasoline, in Vancouver it is 60 cents tax per liter, and in Alberta it is 30 cents.

Some consumers have therefore decided to take public transit to save money. I'm taking the Skytrain at the moment to avoid paying insurance and petrol, says Surrey resident Aaron Cunningham. I used to take my car when gasoline was much cheaper, but now the price is reaching extremes.

With information from Dominique Lesvesque, Belle Puri, Karin Larsen, Jessica Cheung andBC Today

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