Gasoline prices could rise by five cents this week

A leading energy price expert says gasoline prices could rise another five cents in Canada if Russia decides to step up its assault on Ukraine or declare all-out war on Monday.

Dan McTeague, president of Canadians for Affordable Energy, said May 9 marks VE Day in Russia and could prove pivotal in the trajectory of the war in Ukraine.

McTeague says gas prices could also rise by five cents a liter next week if the situation worsens in Ukraine and Canadians prepare for the May long weekend, which is generally seen as the start. unofficial summer.

The average gasoline price in Canada is approaching $1.97 per litre, with British Columbians suffering the most at the pumps, paying an average of $2.06 per litre.

Vancouver is seeing $2.22 per litre, residents of Victoria are paying $2.17 per litre, Montreal drivers are dealing with $2.07 per litre, and prices in St. John’s are at $2.03 per liter.

But McTeague says that even if the war in Ukraine ends in the near future, high gas prices are likely to remain in place for some time as sanctions are likely to remain on Russia’s energy sector.

The supply and demand problem that plagued the oil industry long before the war broke out isn’t going away either, he adds.

“(Some people think) it’s all because of Russia, but nothing could be further from the truth,” he said. “It’s a matter of fundamentals. There was less supply and more demand before and that hasn’t changed.”

McTeague also said the summer season will play a role in rising gas prices as more people hit the road, explore and travel.

“During the summer, gasoline prices tend to pull away from oil prices — they go up much higher,” he said.

He also cites a weaker Canadian dollar as a contributing factor.

This report from The Canadian Press was first published on May 8, 2022.

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