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Cold weather leads to higher gas prices to start the year

Gas prices are higher this January than they have been in the past couple of years. GETTY IMAGES

Drivers are paying more at the pumps to start 2018 than they were in the past couple of years.

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Gas prices traditionally dip during January and February, but that hasn’t been the case this year.

Senior petroleum analyst with GasBuddy.com, Dan McTeague, told 980 CFPL oil prices are staying high and that even the weather is playing a role in pricing.

“We haven’t seen cold weather like this for an extended period of time since 2013, and at that time it took gasoline for a ride,” said McTeague.

He says that doesn’t bode well for the year ahead.

“I think 2018 is the year we see oil and gas supply and demand come back into balance with what the Organization of the Petroleum Exporting Countries is doing and demand will continue to be really strong globally, leading to prices in London likely seven to 10 cents a litre higher than last year.”

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McTeague says the normal for this time of year — for the past couple of years — has been between $1.05 and $1.15 a litre, but prices in the London area have been hovering around $1.15 to $1.20.

He expects prices will come down slightly, before rising to $1.30 or so in time for spring and summer.

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