Gas prices may rise
The Canadian Press – May 8, 2022 / 3:18 pm | History: 368351
Photo: The Canadian Press
The price of gasoline can be seen when a driver refueling a gas station in Montreal on Friday, May 6, 2022. CANADIAN PRESS / Paul Chiason
A leading energy expert says gas prices could rise another five cents in Canada if Russia decides to step up its attack on Ukraine or declare total war on Monday.
Dan McTeague, president of Canadians for Affordable Energy, says May 9 marks Victory Day in Russia and could be key when it comes to the trajectory of the war in Ukraine.
McTeague says gas prices could rise by an additional five cents a liter next week if the situation worsens in Ukraine and as Canadians prepare for the long May weekend, which is usually considered the unofficial start of summer.
The average price of gas in Canada is around $ 1.97 per liter, with British Colombians experiencing the most pain at the pump, spending an average of $ 2.06 per liter.
Vancouver sees $ 2.22 per liter, Victoria residents pay $ 2.17 per liter, drivers in Montreal earn $ 2.07 per liter, and St. John’s prices are $ 2.03 per liter.
But McTeague says that even if the war in Ukraine ends in the near future, high gas prices are expected to remain in place for some time, as sanctions are likely to remain on Russia’s energy sector.
The problem of supply and demand, which weighed on the oil industry long before the outbreak of the war, will also not go away, he added.
“(Some people think) it’s all because of Russia, but nothing could be further from the truth,” he said. “It’s a matter of fundamentals. There used to be less supply and more demand, and that hasn’t changed.”
McTeague also said the summer season will play a role in raising gas prices as more people travel, explore and travel.
“Gasoline prices tend to be different from oil prices in the summer – they are much higher,” he said.
He also cites the weaker Canadian dollar as a contributing factor.
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