Canada’s Gas Guru says get ready to open your wallet a bit wider when you’re paying for fuel. Senior petroleum analyst Dan McTeague says a more expensive year lies ahead for gas prices.
“2018 looks like it’s going to be a more expensive year to fill up at the pumps, “McTeague said. “Both for gasoline and diesel, than in was in 2017, or even 2016 for that matter.”
McTeague says an increasing appetite for gasoline, along with higher levels of fuel consumption and political instability will lead to a higher gas tab.
McTeague says these ingredients will likely lead to prices in Saskatchewan staying above the dollar-per-litre mark for the time-being
“Short of anything the federal government does,” McTeague said. “If it imposes or puts anything into place like carbon taxes, as we’re seeing this morning in Alberta. The provincial government there has added 2.35 cents a litre.”
Alberta’s carbon tax jumped on New Year’s Day, but the provincial government says the increase is tied to the province’s improving economy. Deputy premier Sarah Hoffman told reporters on Monday there was a link between the tax and the approval of several pipelines in 2017.
She noted that the federal government was clear its approval of the Trans Mountain expansion was due in part to Alberta putting a price on carbon.
McTeague says a more expensive year ahead is in the cards — given the economic momentum of last year as well as increases in consumption for fuel. Also, McTeague says the lower prices last year took a toll on retailers.
“And there are examples of where we could see below-cost selling,” McTeague said. “That’s really why prices are so competitive here in Regina and right across Saskatchewan. And of course, your taxes. They continue to be the second-lowest next to Manitoba. Which at some point this year will be introducing it’s own version of a carbon tax.”
On Wednesday, McTeague will release his province-by-province outlook on fuel consumption in Canada.