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Okanagan gas prices reach all time high; more hikes expected

Click to play video: 'Lining up for Gas'
Lining up for Gas
WATCH ABOVE: Kelowna drivers lined up for more than a block on Tuesday evening to get in on the last gas stations selling regular grade gasoline for less than $1.33 a litre. Gas prices in the Okanagan have now reached an all-time high. – Apr 25, 2018

Most gas stations in Kelowna have reached a record high of 146.9 cents a litre for regular grade gasoline.

In Vernon, the gas war that kept prices as low as 117.9 until Wednesday has ended, with most pumps showing a price of 145.9 cents a litre for regular grade.

READ MORE:  Looking to fill up the tank? Try Vernon

Penticton drivers are faring a little better for the time being, with most stations selling regular grade gasoline for 139.9 cents a litre.

So what is happening with the price of gas?

 

Click to play video: 'Interview with Keith Schaefer'
Interview with Keith Schaefer

WATCH ABOVE: Oil and gas analyst Keith Schaefer answers questions about the high cost of gasoline in British Columbia.

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Keith Schaefer is an oil and gas analyst with an online blog called Oil and Gas Investment Bulletin.

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He said oil prices have risen about ten per cent in the last three weeks.

“This summer I would expect gas prices to rise another ten cents a litre at least, even without the Alberta government threats taking effect,” he said.

“What happens in the summer is oil usage around the world goes up by about two million barrels a day.”

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Schaefer said there is a reason why supply this summer is lower than in past years, while demand is on the rise.

“Oil inventories around the world are coming down for two reasons.  One is the OPEC cuts that the Saudis are doing, and two is Venezuela is falling apart and oil production is falling through the floor like no one thought possible.”

Dan McTeague, the gas analyst behind gasbuddy.com agrees that the cost of driving is likely to rise even more.

“You might see some adjustments between now and the May long weekend, but we then enter the summer demand driving season,” McTeague said.  “That always brings with it anywhere from a four to seven cent a litre increase, and I’m not taking into consideration geo political tensions or meteorological events.”

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