KELOWNA — Gas prices jumped overnight in parts of the Okanagan this week. Kelowna drivers were surprised to see prices go up from $1.10 to $1.24.
A senior petroleum analyst with GasBuddy.com, Dan McTeague, calls this a significant jump.
McTeague explains there are two factors driving the high prices.
He says there are three major refineries in the American Midwest experiencing issues, and consequently, processing less gasoline.
This shortage is affecting many cities across Canada, including those in the Interior.
McTeague says the second reason is many gas stations have been losing money by charging the low prices.
“Those retail margins have dwindled down to zero. It was impossible for most gas stations to stay open unless they sold other things other than gas,” says McTeague.
He believes the 14 cent jump was a way to correct this, but expects that price isn’t here to stay.
“It’s six cents above what would normally be arrived with by traditional calculations. That’s what leads me to believe the $1.24 won’t be sustained and it will be dropped within the following days.”
McTeague predicts the prices will go down to about $1.17 a litre.
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