Lower Mainland residents woke up on Monday morning to another jump in gas prices, with some seeing around $189.9 per litre.
Experts say it stems from spiking oil prices, with refineries being targeted by militaries and Iran shutting down the Strait of Hormuz, a key shipping route for the global energy sector.
The price of oil hit nearly $120 a barrel before easing Monday morning slightly.
“It looks like the longer this goes, the conflict in the Middle East with Iran and Iran responding, that markets are extraordinarily roiled, very nervous, and it could bring prices back here in Vancouver to something we haven’t seen since February of 2025,” Dan McTeague, president of Canadians for Affordable Energy, told Global News.
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“That’s where we went back into the $2 range.”
That is not the only factor that could cause sky-high gas prices heading into the spring.
“On April 1st, we have an increase in the industrial carbon tax that will increase prices, and we have on the 15th (of April) a switchover from winter to summer blends of gasoline,” McTeague said.
However, according to the Canadian Climate Institute, industrial carbon pricing does not have a big impact on gas prices.
They found that it now costs industrial facilities nine cents per barrel, on average and even by 2030, if the policy is strengthened, it will then only cost about 50 cents per barrel.
But world markets could also be impacted as oil production is stalled in the Middle East.
“I think it’s just more of a wait-and-see approach right now,” Bryan Yu, Central Credit Union chief economist, said.
“I think we have to look at the overall environment as one where it’s too volatile on a daily basis and ultimately, some of these factors could shift away pretty quickly.”
The price of diesel has also increased, sitting at nearly $2.27 per litre.
So glad I made the wise decision to go EV 10 years ago. I fuel as I sleep with zero regrets.
you can put the blame on israel and USA
Price gouging, plain and simple.We are still refining oil from before the war but without fail the greed factor comes into play.G7 could release reserves but “No” and of course the taxes will increase April 1 because it is “Fools Day” aka “Celebrate a Politician Day”.