A warning earlier this week that gas prices in Metro Vancouver would rise even further, and hit record levels in some areas, has borne some seriously expensive fruit.
On Thursday, Dan McTeague, a petroleum analyst with GasBuddy.com, tweeted that region’s gas prices have hit their highest levels since early last October and are still forecast to climb this week to a “new record” of 1.649 cents / litre.
⚠️⛽️Alert: #Vancouver and the Lower Mainland ⛽️ prices have reached their highest since Oct 13. Tomorrow will see a new record @ 164.9 cts/l. Gasbars hiked their retail margin by an extra 2 cts and BC’s 1.16 ct rise in carbon taxes Monday made a bad situation worse
— Dan McTeague (@GasBuddyDan) April 4, 2019
However, at least one gas station in the region has reportedly already gone beyond McTeague’s warning, climbing a further three cents to $1.67 / litre.
— Ashley Ramsay (like the chef) (@arams11) April 4, 2019
Earlier this week McTeague said British Columbia is in the midst of a carbon tax rate increase.
The increase began last year in April when the tax rate was $35 per tonne. The rate will increase annually by $5 per tonne until it reaches $50 per tonne in 2021.
This adds an additional one cent to the province’s current carbon tax for a carbon levy of over nine cents per litre.
Not to mention, later this April, gas stations will be switching to a “summer blend” of gasoline, he said.
The summer blend has a pricier composition than its winter counterpart and drivers can expect to see prices increase by several cents from the switch alone.
“Gas prices are in the midst of their seasonal surge as we begin the switchover from winter to more expensive summer fuel,” says Dan McTeague, senior petroleum analyst at GasBuddy. “Already, average prices have jumped nearly 20 cents per litre, but the bumpy road will be getting worse.”
Other factors like a rise in the price of oil, as well as a weaker Canadian dollar, will also drive prices up at the pump.
McTeague forecasts that gas prices are likely to continue rising before a peak in early summer.
With files from Ainsley Smith and Vincent Plana