Blame it on the official arrival of summer. Blame it on the fighting in Iraq. Blame it on the upcoming long weekend.
Whatever the reason, gas prices have been on the rise and are set to soar even further in the coming days.
According to former MP Dan McTeague鈥檚 website , the probability that gas prices will rise across the country over the next two days is "100 per cent."
The current average price of a litre of fuel in Canada is $1.38. In Halifax, gas is currently selling for approximately $1.40 per litre. In Montreal, it's around $1.52 a litre. In Edmonton 鈥� where gas prices are generally near their lowest 鈥� it's $1.27. And In Vancouver, they're looking at $1.55 for a single litre.
While the summer usually means a spike in demand as more drivers hit the road to summertime destinations, McTeague says refiners are already accustomed to seasonal cycles and account for increased demand.
"This has nothing to do with summertime increase," he told 麻豆影视 Channel Friday.
"There's plenty of supply of both gasoline and crude in the system, in North America and the rest of the world."
He also doesn't think that the recent fighting in Iraq is affecting crude supplies. Iraq is just one of many situations that have the potential to affect supply; the tension in Syria, sanctions in Iran and oil hoarding in China are others.
McTeague says energy traders typically account for "the usual geopolitical tensions" when they set their prices.
"Those are always issues that provide a floor for crude prices. But what we're seeing in Canada is certainly exceptional. It's way above what (gas prices) are in the United States," he said.
Tomorrow鈥檚 Gas Prices Today reports an approximately 30-cent per litre price difference between Canadian and U.S. border cities. While one might argue the two countries have different fuel tax systems, McTeague say that doesn't explain the price differences either.
"The fact is, there's a real discipline in their markets down there and there's a lot of competition. It's not the same here in Canada. And unfortunately, consumers are being treated to the highest prices they've ever seen, and that's got implications for the entire economy," he said.
The larger problem is that several oil refining facilities have been shut down in Canada and that's meant that our country is importing more refined products even as we export crude to the U.S. at a discount.
"It doesn't help that Canada no longer has the infrastructure to buffer and protect itself. We are no longer prices makers; we are price takers," he said.
