Gas prices spike in London to $131.9/L
- Author: Joey Payne Sep 03, 2017,
Sep 03, 2017, 16:30
Dan McTeague, a senior petroleum analyst for GasBuddy.com, said gas shortages could become a reality for many parts of the United States next week.
The price at the pump rose Thursday night in Montreal for a second time in three days, reaching an average of almost $1.35 per litre of regular fuel by Friday morning.
Hurricane Harvey has caused gas prices to spike.
On Monday, the average price on the island was $1.16.
A key pipeline carrying oil from the gulf coast to the eastern seaboard shut down on Thursday, raising the possibility of gas shortages in the US southeast, mid-Atlantic and northeast, Nasdaq.com reports.
Drivers can expect to see much higher prices at the pumps this Labour Day weekend.
But most Canadian markets have seen gasoline prices rise several cents per litre over the past week, which has seen refinery and pipeline shutdowns in the U.S. Gulf Coast region due to storm-related flooding.
"I would definitely. buy some gasoline", he said.
Some analysts have speculated that it could take months for the fuel market to return to normal, based on records from previous hurricane outages, but Ervin said it's more likely to be a few weeks as it appears there's been less damage to refineries and pipelines.
The Eastern Canadian price hike can be read as a "shot across the bow" to signal that refineries in Ontario and Quebec don't have excess product to sell into the USA market, Mr. McTeague said. But McTeague says Canada simply isn't producing enough to meet that demand. "We're just not in a position where we can sell spare capacity".
"We got a big jump on the prices in Canada", McTeague said Friday.
In Quebec City, however, drivers are paying nearly $ 1.24 per litre.
In Vancouver, McKnight predicted little change on the weekend but McTeague says he expects a five-cent jump on Saturday.