Gas pain remains at the pumps around Metro Vancouver.
Gas prices have already climbed back up to 177.9 a litre in most places across the region and petroleum analyst Dan McTeague told Global News they are about to go up another four cents overnight to 181.9 a litre.
This would mean gas has gone up 24 cents a litre since last week.
“You’ve seen the past couple of weeks, prices move up, what is about 20 cents a litre or more, mostly due to, you know, an increased demand south of the border in the United States, especially on the Pacific Coast, where we’ve also seen a series of small but important setbacks in terms of refinery production,” McTeague said.
He added that the Valero Plant in Benicia California caught fire last week and one of the units that turns oil into gasoline was badly damaged.
He said that demand is also up, the Canadian dollar is down and B.C. does not produce enough for the province’s needs.
“What has also been a considerable concern is the demand picture in California, in the Pacific Northwest and right here in Vancouver,” McTeague said.
“Given these lower prices, demand is up and we’re heading towards this weekend. Memorial Day long weekend in the United States and of course here in Canada, Victoria Day long weekend. That’s always been, in my 30 years of doing this, the official kickoff of the summer driving season”
Premier David Eby announced in March that B.C. would follow the federal government’s lead after Prime Minister Mark Carney ended carbon pricing a week before calling an election on March 23.
“The carbon tax played an important role here in British Columbia for many years, assisting us in reducing our emissions while our economy continued to grow,” Eby said.
“It was supported by parties from many different backgrounds in the province. However, the tax has become divisive.”
Eby said drivers should see a savings of 17 cents at the pump.
McTeague said the elimination of the carbon price did lead to a decrease in price at the pumps, but they are starting to see prices possibly bounce back to normal.
“I say that because a year ago now, gas prices in Metro Vancouver were $202.9 on average from end of city to the other,” he said.
“At $1.78 to $1.81, much of that difference is strictly the carbon tax of 20 cents being removed. All else at this time of year, we do see that upward swing in prices. And so the swing is still there and the positive effect of the carbon taxes now becoming less and less a concern.”
McTeague said drivers are likely to see prices move up another 10 cents a litre before they stabilize between now and mid-June, or when the refinery in California gets back online.
He predicts that prices between $1.80 to $1 90 will be the new normal, at least going through the summer period.