Published: Sat, September 02, 2017
World Media | By Shelia Harmon

Ontario gas prices headed for major spike in wake of Harvey

Ontario gas prices headed for major spike in wake of Harvey

Torontonians can expect to pay more than $1.30 for a litre of gasoline by Saturday prices continue to surge in the wake of Hurricane Harvey.

The Canadian average gasoline price has risen above $1.16 per litre ahead of the Labour Day long weekend.

Overnight, Montreal gas prices went up 10 cents to $1.26.9/litre of gas, reports CBC. "We've already seen, of course, the higher prices associated with that disruption".

Although Canadian refineries aren't directly impacted by the storm, they're experiencing shortages that are causing fuel prices to skyrocket.

"Inventories are declining, wholesale prices are rising, and that will have an impact in Eastern Canada more than in Western Canada, just because of its proximity to that major market in the States", said Kent Group senior vice-president Michael Ervin. Now there is no indication the refineries have been damaged by the hurricane or resulting flooding.

TD Securities analyst Bart Melek said in a note Friday he expects crude oil prices to strengthen to above US$50 per barrel before the end of September as Houston refineries, ocean import facilities and pipelines gradually return to normal operations.

Gas prices in Regina jumped by seven cents a litre earlier this week.

“And a potential increase for Sunday, ” McTeague added. At the start of the week, prices were about $1.14 a litre.

"I think about three weeks is a good estimate, until then I don't see the prices dropping", he said.

The result has been an instant five-cent rise in gas prices in Toronto, for example - and McTeague is predicting a further jump of nine cents on Saturday.

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