Gas prices are hitting records in Canada

Expert says that Gas prices are getting very expensive and it’s not going to stop anytime soon

In B.C. the price of the gas hit $1.619 on Monday,  the highest price point ever for North America, Gas Buddy spokesperson Dan McTeague said.

In Manitoba, gas was at an average of $1.276, which is up nearly 31.5 cents from last year’s average at the same time.

There’s a few reasons for this inflation, McTeague explained, including a weak Canadian dollar, taxes, refinery supply and demand and the changing retail landscape.

First, while oil prices have increased, in the past this has signaled an uptick of the value of the Canadian dollar. However, the same hasn’t happened this time, he explained.

Oil prices have gone up nearly one third, year over year, but since the Canadian dollar is so low, that means instead of getting the full value of US$68 a barrel, Canadians get around $48.

McTeague said, “If the Canadian dollar were on par with the U.S. dollar you would be saving 15 cents a liter at the pumps across Canada.”

Another major factor in gas pricing is the lack of what McTeague calls gas bar shenanigans: where local gas stations compete and drop prices to outbid competitors.