Metro Vancouver gas prices to rise, could reach $2/litre by summer: analyst

Gas prices in Metro Vancouver are expected to increase again this coming weekend, and rise even further in the weeks ahead, according to a petroleum analyst.

The price at the pump around the region has already surged around five cents per litre since last week.

“We could see prices eclipse $1.90 a litre. Right now, we’re at about $1.88 so we could drift a little higher and by next week, we might come back down below $1.90 a litre,” Patrick De Haan, head of petroleum analysis for GasBuddy, told CityNews.

“I have to say though, that there’s a certain amount of volatility depending on what is happening now with some of these discussions in the broader economy.”

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In the coming weeks, De Haan says there’s a chance gas could once again hit $2 for a litre of regular. Prices rising that high, he explains, would be contingent on what happens in Washington, D.C., where there are discussions surrounding the United States debt ceiling.

“The thinking is that if there’s a default on the U.S. debt, it’s going to spell doom for the economy and push it into a deeper recession, which of course would affect Canada as well. Whereas if there’s a debt deal that prevents a default, then that could mean the U.S. avoiding a recession altogether as the economy and jobs remain rather strong,” De Haan explained, adding if a recession is avoided, gas consumption will likely rise.

“There’s a wide range of possibilities this summer that could ultimately happen, but we may see prices touch $2 a litre if some of those exceptional events that aren’t expected, come to pass.”

The analyst also points out that diesel prices are now more in-line with regular gasoline as well.

“Across Vancouver, for those who drive a truck or have an RV or something that consumes diesel, we’re seeing some of those low prices back down into the $1.70 a litre region,” he noted.

De Haan stresses that there are a myriad of factors that could further affect gas prices, as we move into the summer months.

“There could be things like hurricanes and refinery shutdowns that push prices ultimately higher. And of course, there’s a lot of different directions that the economy could take,” he said.

De Haan previously told CityNews the Metro Vancouver region has seen a lot of relief since the record highs of last year.

He added that it was unlikely the area would see the same record prices that hit last year, “unless we get some sort of out-of-left-field economic shift or a major hurricane.”