Gas prices spike in London to $131.9/L

Sep 03, 2017, 16:32
Gas prices spike in London to $131.9/L

Compared to Thursday, the commodity price has already jumped more than six cents a litre in NY, meaning the increase in New Brunswick is likely to happen tonight.

Longer term, both Mr. McKnight and Mr. McTeague expect prices to remain elevated.

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.

Dan McTeague, senior petroleum analyst with the price-comparing website, says it's a matter of when, not if.

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Prices at the pump have already leapt more than 10 cents over the past week in much of Ontario.

He said the only thing that could drive up prices in Western Canada would be if the entire eastern United States seaboard is hit with severe gas shortages and begins siphoning away gas from the U.S. Midwest market.

"Gasoline in NB (but not diesel or heating oil) likely to jump as much as 9 cents tonight at midnight in special Harvey price setting", CBC's resident Gas Guru Robert Jones tweeted this morning.

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

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While Canada isn't expected to experience the same supply problems, Americans could look north for more gasoline, he said.

Average Canadian gasoline prices are set to soar this weekend after already jumping almost 10 cents per litre since Hurricane Harvey roared ashore in Texas a week ago.

"But right now we're not seeing that", he said.

"Until we get engineers into the refineries to assess the damage it's all speculation", he said. "And simply because buyers in the States would be looking to Canada for supply, we're seeing higher wholesale prices in Eastern Canada as well", Ervin said.

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