Pumped up gas prices may dip slightly

Pumped up gas prices may dip slightly

Prices already jumped almost 10 cents in some places since Harvey roared ashore in Texas a week ago.

Locally, prices across the Greater Toronto Area may hit between $1.329 and $1.339 per litre on September 2.

Prices are expected to remain high until refineries on the U.S. Gulf Coast return to normal operation, the timing of which will remain unknown until floodwaters recede and damage is assessed, they say.

Earlier this week SooToday staff reported seeing gas prices as low as 106 cents per litre in the city.

According to GasBuddy dot com, prices in Regina are already hitting the 109.9 mark. With this, two of the largest pipelines in the U.S. - the Colonial Pipeline, which feeds much of the Northeast U.S., and the Explorer Pipeline, which runs from Texas to Chicago - have signalled that they're severely limiting throughput due to a lack of product to transport, raising the possibility of shortages.

It appears New Brunswickers are in store for a major jump in gas prices - perhaps by nine cents a litre by midnight tonight.

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McTeague suspects service stations such as those in Montreal will use the wholesale price increase as a pretext to increase their profit margins.

"I would definitely. buy some gasoline", he said.

McTeague said Canadian fuel prices are rising faster than U.S. prices because Canada is undersupplied with domestic fuel, causing an overreaction to supply shortages resulting from the closure of key refineries and gas pipelines on the U.S. Gulf Coast. "We barely have enough for ourselves", he said. "We're just not in a position where we can sell spare capacity".

And the price difference is even more pronounced off Montreal island, particularly on the South Shore, the Laurentians, the Gatineau area and eastern Quebec.

"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.

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