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Ontario gas prices headed for major spike in wake of Harvey

03 September 2017

Analysts expect a hike of around 5 cents by Friday evening, followed by a further jump of 9 cents on Saturday.

Compared to Thursday, the commodity price has already jumped more than six cents a litre in NY, meaning the increase in New Brunswick is likely to happen tonight.

McTeague said Harvey-induced fears of potential gas shortages in the eastern US are mainly what's driving up prices this weekend in many eastern Canadian cities.

It could always be worse, however - McTeague said prices rose in Ontario and Quebec by 20 cents a litre across the board.

Prices in Regina were at $1.01 per litre on average Thursday, compared to 95 cents last week.

He said the only thing that could drive up prices in Western Canada would be if the entire eastern United States seaboard is hit with severe gas shortages and begins siphoning away gas from the U.S. Midwest market.

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He added that she seemed to "have no plan at all" to deal with the issue of pollution from diesel emissions that exceeds the limits of several cities.

According to McTeague, people in Saskatchewan should expect to see gas prices increase another five to seven cents per litre throughout the weekend.

While Canada isn't expected to experience the same supply problems, Americans could look north for more gasoline, he said.

Hurricane Harvey has wreaked havoc in Texas along the Gulf Coast, causing oil refineries to pre-emptively shut down production.

Some analysts have speculated that it could take months for the fuel market to return to normal, based on records from previous hurricane outages, but Ervin said it's more likely to be a few weeks as it appears there's been less damage to refineries and pipelines. "We're just not in a position where we can sell spare capacity". A better picture of impact on overall supply will start to emerge early next week, although oil futures contracts are already pointing to a price decline of about 2 cents starting on Sunday, he said.

"If you're driving with 75 litres and you're going to be travelling this weekend, the increase could be at least $7 or $8" extra to fill up, he said.

Ontario gas prices headed for major spike in wake of Harvey