Gas prices spike in London to $131.9/L

Sep 03, 2017, 16:32
Gas prices spike in London to $131.9/L

That will bring the price up to 132.9 cents a litre, just as families hit the road for the long weekend.

Dan McTeague, senior petroleum analyst at GasBuddy.com, predicted in tweets that Greater Toronto, Hamilton, London and the Ottawa area can expect to see a five-cent gas price hike on Friday.

If the price on any given day increases more than six Canadian cents per litre, the New Brunswick Energy and Utilities Board activates its interrupter clause, which allows the board to increase the maximum price gas can be sold for. "And with that they'll be able to feed product into the Colonial Pipeline and restore inventories in the northeastern US", said Michael Ervin, senior vice-president with Kent Group Ltd. Analysts expect a hike of around 5 cents by Friday evening, followed by a further jump of 9 cents on Saturday.

Hurricane Harvey has caused gas prices to spike.

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The uncertainty about gasoline production could stretch into a couple of weeks, he said.

Many U.S. refiners would like to turn to Canada for oil supplies, particularly because our lower dollar makes our petroleum products a good value.

USA benchmark oil prices that fell below US$46 per barrel on Wednesday due to less demand from refineries have recovered to more than US$47 per barrel.

"We got a big jump on the prices in Canada", McTeague said Friday. "And simply because buyers in the States would be looking to Canada for supply, we're seeing higher wholesale prices in Eastern Canada as well", Ervin said.

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In Quebec City, however, drivers are paying nearly $ 1.24 per litre.

"This is going to last through the month of September and likely into October as well, with some variation", McTeague predicts.

The price of gasoline is rising quickly in the United States - up 40 cents a gallon and increasing every day - but not as fast as it did in Canada, raising public suspicions about price gouging.

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