Why Vancouver gas prices are surging for drivers this week
You may want to consider keeping your next road trip closer to home, as Vancouver gas prices are experiencing a sharp increase with no relief in sight.
Drivers and commuters woke up to prices at the many Metro Vancouver pumps sitting around $1.91.
According to Suzanne Gray, a sales and services consultant with Kalibrate, retail gasoline prices in Vancouver have increased 13 cents per litre in the last week.
Daniel Chai/Daily Hive
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“Wholesale prices in Vancouver have increased by a substantial 21.2 cents per litre during the same time frame, indicating that retailers have not passed along the full price increase,” said Gray to Daily Hive.
“Compared to the end of August, retail gasoline prices in Vancouver are 17.0 cents per litre higher and wholesale gasoline prices in Vancouver are 22.6 cents per litre higher.”
Gray explained that the permanent shutdown of the Phillips 66 refinery in Los Angeles last week is a primary factor in the rise in Vancouver gas prices.
“Markets along the entire North American West Coast are interconnected,” added Gray. “This area of North America is somewhat disconnected from the rest of North America, with no direct pipeline access to the Gulf Coast refinery hub.
“When there are refinery issues on the West Coast, wholesale prices will spike in order to attract refined product imports to the region. This is likely what we are seeing now.”
Kalibrate’s data indicate that higher gas prices may persist in the short term, particularly since retail prices have not yet fully reflected the full increase observed in wholesale prices.
“However, according to the U.S. Energy Information Administration’s newly released Short Term Energy Outlook, crude oil prices, which make up a large portion of the retail pump price, are expected to decline in the coming year as crude oil production is expected to outpace consumption,” said Gray.
“In addition, as the summer driving season comes to an end and gasoline demand tapers, we may see some price relief as a result. Also at this time of year, refiners move to winter-blended gasoline, a cheaper blend to produce.”
Drivers shouldn’t get used to any future dip in Vancouver gas prices, as Gray explained that the Valero refinery in California is also expected to shut down in 2026, further exacerbating price differentials along the West Coast.
Have you seen the price jump at the pumps near you? Are you changing your driving habits due to the sharp rise in Vancouver gas prices? Let us know in the comments or get in touch at vancouver@dailyhive.com.