Metro Vancouver gas prices on the rise — again

VANCOUVER (NEWS 1130) – Gas prices have been pushing higher in recent days, and an expert warns they could continue to trend up.

This comes as the price of crude oil rises to levels we haven’t seen in some time.

West Texas crude jumped to nearly $80 USD a barrel this week, the highest it’s been in seven years. En-Pro International Chief Petroleum Analyst Roger McKnight is among those who believe we’ll start to see the knock-on effects of that at the pump as soon as this week.

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When it comes to how much you pay for a litre of regular in eastern Canada, he explains prices tend to follow the New York Harbour Futures. However, here on the west coast, McKnight says what you pay is usually dependent on the price of crude.

“Especially anywhere west of Thunder Bay, Ontario, crude oil is a huge determining factor in the price at the pump,” he told NEWS 1130.

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“Generally speaking, across the country, we’ve seen jumps at the wholesale level of two cents a litre come into effect tomorrow, so you should see the same thing in the Vancouver area,” he said Wednesday.

Demand on the rise

McKnight says in addition to the crude oil situation, the Organization of the Petroleum Exporting Countries’ “reluctance to increase production” is another contributing factor.

“I think a lot of this has got to do with OPEC sort of putting the supply on a drip feed, if you like. They’re not increasing crude oil production to the level to meet worldwide demand,” he explained.

Much of that demand has been on the rise because of the “theoretical economic recovery from the pandemic,” McKnight says.

“They get fingers pointed at them quite a bit, sometimes unjustified. But I think this time they are justified, and it’s going to really affect the economic recovery on a global basis and especially in North America.”

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When it comes to the historic highs, McKnight says “we’re in unchartered waters.”

As we continue to see prices rise, he says it doesn’t appear there will be any relief any time soon.

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Metro Vancouver has seen prices as high as 162.9 per litre of regular in recent days.