Expect a turbulent year ahead in gas prices across Canada. (Ashley Wadhwani/Black Press Media)

Drivers can expect a wild ride at the pumps for 2019: analyst

Vancouver expected to displace Montreal as the highest taxed jurisdiction on fuel in North America

Motorists can expect a year of volatility at the pumps this year as world markets move sharply in varying directions for the foreseeable future, predicts one analyst.

“Canadian drivers should expect a bumpy ride at the pumps in 2019 with markets fluctuating wildly given the uncertainty over the economy as a whole and energy markets being driven by a news headline sensitive stock market,” said Dan McTeague, senior petroleum analyst with GasBuddy.

At the outset of 2018, GasBuddy accurately predicted a year that would see pump prices reach their highest annual average since 2014. Although the price to fill up dropped substantially in the final quarter of the year, average prices remained 13.9 cents a litre higher than 2018 at $1.242 per litre, the highest since 2014’s average of $1.263 per litre.

RELATED: Capital Region regular gas prices highest since 2008

RELATED: Gas prices jump 14 cents across Greater Victoria overnight

The expected turbulent year ahead follows the pattern of major price swings seen on both the equities and futures markets in the final weeks of 2018 as energy traders look global markets for clues of an economic rebound or continued slowdown in light stemming from concerns over a looming trade war between the U.S. and China trade, Brexit, the status of global crude supplies and overall demand for oil products. For Canada specifically, a weaker Loonie, which now stands 10 cents weaker than the U.S. greenback and Ottawa imposing a 5 cent per litre carbon tax on April 1 point to higher than usual pump prices for the spring and summer driving season as pipeline constraints and taxes continue to widen the spread between the price of oil and pump prices.

RELATED: Tax hikes across B.C. set for 2019

RELATED: Bills to grow bigger in 2019 for B.C. residents

“With carbon taxes set to begin or increase in 8 of 10 provinces, the average hike of 5 cents per litre by April 1, combined with a limping Loonie, will almost certainly force up the cost of filling your tank, just in time for the summer driving season and switchover to more expensive summer gasoline,” said McTeague. “The tax increases will be particularly noticeable in Vancouver which will displace Montreal as the highest taxed jurisdiction on fuel in North America.”

Although fuel prices are likely to reach 2018 levels and at times reach above seasonal highs, extra attention will need to be given to the ongoing premium of diesel prices, which are not expected to fall notably for several years. Overall, fuel prices in 2019 could well turn out to be more expensive than any year since 2014, helped in no small part by an increase in gas taxes and currency challenges.

GasBuddy.com shares crowdsourced, real-time fuel prices at more than 150,000 gas station convenience stores in the U.S., Canada and Australia.



c.vanreeuwyk@blackpress.ca

Like us on Facebook and follow us on Twitter

Just Posted

Province announces more improvements for Highway 14

$85-million project made possible through federal funding support

Wild Wise Sooke founder leaves post

Lush Cosmetics offers much-needed funding for the group

UVic partners with harm reduction groups to run a drug checking pilot project

The three-year pilot will allow people to test their drugs for fatal ingredients like fentanyl

Public asked to give feedback on proposed protection measures for southern resident orcas

Measures focus on key threats related to contaminants, lack of prey, noise or physical disturbance

Many teens unaware if they’re vaping nicotine or not

Health Canada survey finds many youth are unaware of the risks of using nicotine products

WATCH: Police call Happy Valley shooting an ‘isolated and targeted’ incident

One person in custody, another fled following crash on Kelly Road

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

Music Monday to unite students across Sooke in song

Over 200 students will carol around town on May 6

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

POLL: Do you think the Notre Dame Cathedral in Paris should be rebuilt?

Images of one of the word’s most iconic landmarks were seared into… Continue reading

B.C.’s largest Vaisakhi festival target of threatening Facebook post: Surrey RCMP

Police say they are investigating the posts on Facebook, after local MLA forwarded screenshots

Most Read