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Gas prices on the rise in Metro Vancouver

ABOVE: This weekend could see gas prices above a dollar forty a litre in many parts of the lower mainland. Catherine Urquhart looks at the reason behind the jump – Mar 30, 2017

Just as Spring Break has ended and many are getting back to their daily commutes, gas prices in Metro Vancouver have climbed overnight and are expected to soar even higher in the coming days.

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According to Dan McTeague of Gasbuddy.com there has been a three cent per litre increase overnight, putting gas prices in downtown Vancouver at about $1.34.9 cents a litre.

“When you go further out from Vancouver and the Lower Mainland it’s much cheaper because there’s difference in tax treatment,” said McTeague. “But we are looking at yet another penny increase over night.”

WATCH: Gas prices rising across Canada

For those who were not happy with the $1.34.9 price increase may be left feeling even more disappointed with the $1.35.9 rate that is expected to be the wholesale price moving up.

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READ MORE: Gas prices on the rise in Metro Vancouver

“I’m looking at the markets this morning and they are still indicating that prices are going to go up another two maybe three cents a litre by the weekend,” said McTeague. “We could be looking at $1.38 a litre by Friday, Saturday, or Sunday, and I don’t see any relief just yet.”

The increase in gas prices is suspected to be due to the turnaround time for the Phillips 66 Ferndale refinery just south of the border in Washington State being delayed, speculators are concerned there isn’t enough gasoline with such high demand, according to McTeague.

“The problem in the United States becomes a major headache for motorists here in Vancouver, mostly because we are very dependent on outside sources to get our gasoline and our diesel,” said McTeague. “This one refinery happens to produce 160 thousand barrels a day, we import well over half of our gasoline here in Vancouver.”

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READ MORE: Despite soaring gas prices, February inflation slips to 2%

McTeague says most gas stations are still making a fair income, keeping in mind they also run convenience stores. In Vancouver it costs gas stations seven cents to cover their costs, anything above that is going straight into their pocket, but McTeague says they are not at fault for the rising prices.

“[The increase in gas prices] has a lot to do with the economics south of the border, it also has to do with the weak Canadian dollar, and to make matters worse the taxes we pay here in British Columbia,” said McTeague.
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