Metro Vancouver gas prices headed for a fall spike, analyst says

Gas priced at $2.06.9 in at a Metro Vancouver gas station on Monday, July 31, 2023. Global News

Metro Vancouver drivers can expect to see gas prices push back over $2 a litre, and potentially stick there, as the region heads into the fall, according to one industry analyst.

Petroleum analyst Dan McTeague told Global News the steady rise in the price of crude oil is fuelling the move, with the pressure at the pumps to be in full swing by early next month.

Click to play video: 'Rising gas prices surprise drivers in Metro Vancouver'
Rising gas prices surprise drivers in Metro Vancouver

“The real story here is oil. And as oil goes up, the cost of refining gasoline continues to rise and that could mean another five to 10 cent increase pushing us a lot closer to $2.15 or $2.20 a litre as early as the first or second week of September, if not earlier,” he said.

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As of Wednesday, WTI crude oil was trading at $84.18 per barrel, its highest since last November.

Typically, consumers can expect a bit of a break on prices in the fall as summer demand drops and refiners switch to winter-mix gasoline, according to McTeague.

But he said OPEC production cuts late last year have been followed by a subsequent unilateral production cut by Russia and Saudi Arabia last month, which is pressing crude prices higher.

Click to play video: '2023 gas price forecast'
2023 gas price forecast

“They want oil at $90 a barrel, not 65 or 63, which is what we were seeing in May and early April with markets being really panicky,” McTeague said.

“Because they are the world’s largest exporter and largest producer they are able to do these things and sort of act as a catalyst.”

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For drivers looking to save a few cents at the pump, McTeague advised visiting the gas station on the weekends or evenings when prices are more likely to drop slightly.

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