Vancouver gas prices have been volatile for the last month due to various factors, and we have some insights on how things will fare leading up to the long weekend in May.
First, let’s address the elephant in the room: the consumer carbon tax.
On April 1, the B.C. consumer carbon tax was scrapped, and drivers were expecting a price drop at the pump. Many theories emerged about why prices actually increased — at least initially.
“It is understandable that consumers might be concerned about why the pump price climbed near the end of March,” said Suzanne Gray, a sales and services consultant with Kalibrate.
- You might also like:
- Will there be lower gas prices after the B.C. carbon tax is axed?
- How B.C.'s carbon tax removal could impact spring and summer gas prices
- Former Vancouver Trump Tower penthouse listed for a pretty penny
Gray added that there are two primary reasons why prices climbed near the end of March.
“One had to do with rising crude oil prices,” Gray said.
“Several announcements coming from the U.S. government in the latter part of March concerning various targeted tariffs and sanctions led to rising crude oil prices.”
The refinery impact is another factor that we’ve historically seen in Vancouver.
“West Coast refinery utilization in the U.S. fell to 72.2 per cent near the end of March. This is the main reason why Vancouver’s retail pump prices climbed near the end of March.”
The geographical nature of the West Coast also has an impact.
“The West Coast of North America is somewhat isolated from the rest of North America, especially when it comes to resupplying petroleum inventories when there are supply disruptions,” Gray noted, adding that crude oil prices have seen a heavy decline since April 2, when U.S. President Donald Trump announced broad tariffs.
After that temporary climb, Gray says Vancouver gas prices have fallen “significantly.” She added that as of yesterday’s survey, they had dropped to 160.1 cents per litre.
Gray expects things to stabilize heading towards the long weekend in May, but things could change as the roads get busier.
“Retail prices might also stabilize heading towards the long weekend in May. However, we may see some bumps as drivers hit the road and drive up demand.”
To sum it up, things should stay relatively stable, but it’s easy to see how various factors could contribute to the volatility we’ve seen in very little time.
Do you tend to drive more or less in late spring and heading into summer? Let us know in the comments.