Fuel prices will continue to climb as Russia’s invasion of Ukraine continues.
En-Pro’s head petroleum analyst Roger McKnight – says that trend of rising fuel prices across the province is driven by supply and demand.
“Canadian prices aren’t made in Canada. When it comes to fuel prices the 49th parallel doesn’t exist. Supply and demand for crude oil and refined products south of the border drives prices north of the border.”
McKnight says inventory stateside is down across many petroleum product types – while demand is through the roof.
“Post pandemic recovery is working. People are frustrated and want to be in the air and back on the road traveling. Demand is high – and inventory is in the trough”.
McKnight says that governments are hoping the demand wanes so the market balances.
“Provincial and federal governments are depending on the price getting so high that demand drops.” says McKnight. “The situation with Russia and Ukraine is not helping. The U.S.is exporting crude from their strategic petroleum reserve and exporting massive amounts of diesel to help Ukraine.”
The prices are tied to the prices of our American counterparts unfortunately – to quote Roger – if the US coughs – we get pneumonia.
Canada is seeing record high fuel prices with the average sitting at $2.06 cents a liter.
