New Brunswickers heading to the pumps Thursday found themselves paying more for fuel. The cost of gas is up almost 4 cents, with the maximum price now set at 133.0¢ per litre.
And it’s been on the rise — especially since late last year.
In early November, the maximum cost was 95.8¢ per litre. But even that is a far cry from early on in the COVID-19 pandemic, when the maximum price was only 73¢ per litre.
Sofine Khalfi, a Rogersville, N.B. resident travels to work in Moncton daily. He certainly feels the impact of the rising costs when filling up his SUV.
“It’s terrible,” he says. “It costs me $10 more than last year.”
Nova Scotians have seen a similar trend when it comes to how much they’re paying for fuel.
Michael Manjuris, a Ryerson University professor and the chair of global management studies, says it started with a supply and demand issue.
“The pandemic hits (and) demand actually stops,” he says in an interview. “It doesn’t go down gradually… it stops.”
Manjuris says several overseas nations producing petroleum, known as OPEC Plus, reduced supply in late 2020.
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Saudi Arabia reduced production by about one-million barrels each day, he says.
“As soon as supply starts to tighten, then the cost of the raw material goes up,” Manjuris says. “That tightening of the market really took hold in January and has accelerated since.”
Demand is rising again, but production levels aren’t.
“The oil that influences us is either from Texas or western Canada, both of which have doubled in value since the beginning of the pandemic,” Manjuris says.
Other factors in the Maritimes include a ‘made-in-New Brunswick’ carbon tax, in place of the federal backstop, while Nova Scotia’s cap-and-trade system costs motorists a cent per litre.
The summer blend of gasoline also pushes prices up at this time each year.
And companies like Poppy Shop, a food delivery service in Moncton covering about 70 restaurants, feel those added costs.
His drivers feel the pinch too.
“It’s going up every week and it’s just making it harder and harder,” says Mike Somers. “It’s just taking money right out of our pocket is what it’s doing.”
Even those who just want to get out are staying in a bit more.
“For myself, I’m retired,” says Reg Deroche, who was filling up his gas tank Thursday. “I like to drive but not at this price.”
Experts predict prices could rise another 5 to 10 cents by summer.
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