Spike in gas prices "likely" after Metro Vancouver refinery shutdown

Gas prices in Metro Vancouver have seen a slow but steady spike since January 23, but the surge has escalated in the past two to three days.

Gas Wizard suggests gas prices in Vancouver are currently around $1.759 per litre. This is a stark increase compared to the $1.669 per litre they sat at on January 26.

There are a few reasons behind the spike, but there’s one primary reason that we could see this increase continue for a few weeks.

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Last week, we shared some stories about the Parkland refinery in Burnaby, specifically regarding some air quality advisories.

Parkland is currently undergoing a temporary shutdown, and normal operations will not commence until approximately four weeks from when the shutdown was initiated on January 24.

We connected with Suzanne Gray, a consultant with Kalibrate, an organization that does data analysis of petroleum and fuel prices.

“Wholesale prices have increased since January 24 in Vancouver and Abbotsford by 6.9 cents per litre,” Gray told Daily Hive.

In comparison, the rest of Canada only saw a 2.6-cent increase in the same time period.

“The region is prone to price volatility.”

Gray suggested wholesale prices may rise further and remain elevated until operations at the refinery resume.

“Increased wholesale prices will likely be mostly passed on to consumers.”

Gray added that it’s hard to pinpoint exactly how much prices will increase.

“Seasonal demand is typically at its lowest during winter, which could moderate some of the increase. However, crude oil prices have risen during January due to increased geopolitical incidences abroad and positive economic sentiment.”

Metro Vancouver drivers have seen relatively low prices over the last several months, so hopefully the spike we see in the coming weeks won’t be too significant.

If your wallet needs a break, you could always head down to Bellingham for cheaper fuel, but be warned, you might ruffle some feathers.