‘Not over yet’: Gas prices continue to climb in Metro Vancouver, nearing $2 a litre

Click to play video: 'B.C. gas prices expected to climb'
B.C. gas prices expected to climb
B.C. drivers are being warned the price at the pump is once again on the rise. On the heels of an overnight price hike of 10 cents per litre of gas, experts warn it's the first of an expected string of increases.

A sudden overnight spike in Vancouver in gas prices has Thursday morning drivers in Metro Vancouver holding onto their wallets.

Gas prices are nearing the dreaded $2 a litre price point in the Lower Mainland, with a station in Richmond as high as 194.9 cents a litre, according to a GasBuddy map.

Gas expert Dan McTeague said it is not a Metro Vancouver issue but a continental issue for all North Americans.

Click to play video: 'U.S. debt ceiling crisis: White House says negotiations continue ‘in good faith’'
U.S. debt ceiling crisis: White House says negotiations continue ‘in good faith’

“We’ve seen markets right across North America rise with the belief with the long weekend ahead in the United States, and the official kick-off to its summer driver season, energy markets are finally focusing on fundamentals — supply and demand and that’s why we saw prices rise,” McTeague told Global News.

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“It’s not over yet. We are going to see a four-cent increase overnight (Thursday).”

Ongoing political issues in the United States, specifically the U.S. debt ceiling, McTeague says, could mean the spike B.C. drivers are experiencing will be short-lived.

“Fitch, which is one of the many debt rating agencies, has issued a warning about the worthiness of U.S. credit. As the political wrangling goes on, it’s likely that (Fitch) is perceiving that there will be a debt default, in which case, markets of all nature will plummet.

“We are likely to see a four-cent decrease, and it could be higher come Saturday.”

Click to play video: 'Money Matters: Inflation, gas prices and summer travel'
Money Matters: Inflation, gas prices and summer travel

McTeague said whatever ends up happening with the United States debt ceiling issue will have large impacts on B.C. gas prices, as soon as next week.

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He said if the U.S. politicians do reach an agreement and do not default on the debt ceiling, gas prices in B.C. could rise as much as 10 to 15 cents a litre in a “very short amount of time.”

If the U.S. does default on its debt ceiling, McTeague said prices could drop 10 to 15 cents a litre overnight.

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