Local gas price skyrockets nearly 30 cents per litre before long weekend

Local gas price skyrockets nearly 30 cents per litre before long weekend

On Friday morning, GasBuddy posted prices of $1.10 a litre in Ottawa, less than $1.08 a litre in Toronto and less than 97 cents a litre in Calgary.

According to GasBuddy dot com, prices in Regina are already hitting the 109.9 mark. Marie days before the long weekend and as of Friday at around 5:30 p.m. prices were as high as 135.9 cents per litre.

It could always be worse, however - McTeague said prices rose in Ontario and Quebec by 20 cents a litre across the board.

But most Canadian markets have seen gasoline prices rise several cents per litre over the past week, which has seen refinery and pipeline shutdowns in the U.S. Gulf Coast region due to storm-related flooding.

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IHS Markit said in a report Friday about 3.6 million barrels per day of Gulf Coast refining capacity or 20 per cent of the US total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates.

The uncertainty about gasoline production could stretch into a couple of weeks, he said.

McTeague said how much the price actually jumped up works out to be closer to nine cents, but the message is the same.

In Western Canada, prices also leapt based on oil trading in Chicago, said Mr. McTeague.

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USA benchmark oil prices that fell below US$46 per barrel on Wednesday due to less demand from refineries have recovered to more than US$47 per barrel. That translates to about 75 cents USA per gallon, he said, adding typical U.S. increases in affected states have been only about 20 cents per gallon.

"Some of the refineries in Canada are going through fall maintenance, and that means we just don't have any capacity".

"We don't produce enough gasoline to allow even a small amount to be siphoned off or purchased by other parties south of the border, so they raise prices to ensure that gasoline prices wholesale are not attractive", he said. As of Friday, most pumps sat around 110 cents a litre for regular fuel in the Queen City.

"This is going to last through the month of September and likely into October as well, with some variation", McTeague predicts.

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McKnight said he thinks gasoline prices will drop back by two or three cents per litre next week throughout Canada.

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