Eastern Canadians Brace For Gas Price Surge While Others Spared
Drivers in Eastern Canada should brace for sharp increases in gas prices over the next few days according to industry insiders. Areas like Ontario, Quebec, New Brunswick and Nova Scotia are expected to see prices at the pumps jump over 10 cents per litre due to the switchover to summer fuel blends which are more expensive to produce. This spike could push gas prices in these regions to their highest levels since last summer.
In contrast, gas prices have remained flat or increased only modestly in other parts of Canada that already transitioned to summer gasoline. Saskatchewan, Alberta and Manitoba have seen little change, while BC motorists are contending with a more moderate 2-3 cent rise. With Eastern refineries now making the seasonal changeover, constrained supply has driven up the cost of filling up in central and Atlantic Canada substantially.
How Long Will Easterners Pay More?
Analysts point to several factors contributing to the lopsided gas price adjustments across the country. Winter blend gas was in ample supply and heavily discounted in the East until now. But switching to the summer formulation has tightened inventories there, amplifying typical seasonal price hikes. At the same time, demand is climbing as more drivers take to the roads with warmer weather.
Industry experts believe the uneven gas price trend will be temporary however. The consultants predict costs will level out within the next 1-2 weeks as refineries fully transition and supply stabilizes. Thereafter, annual seasonal demand and market forces will again determine regional fuel pricing norms. For the present though, motorists in Ontario, Quebec and the Maritimes must absorb the brunt of adjustments to summer gas prices due to local industrial dynamics.
