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

Canadian 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

Give Hope Wings fundraiser launches Saturday from Pitt Meadows

Flying marathon will benefit low income Canadians needing flights for medical treatment

Global 6K for Water held in Maple Ridge

Fundraiser benefits World Vision water projects

Kidney donor honoured by city committee

Maple Ridge realtor received surprise award

COLUMN: Enjoy your own artistic expression

Who cares if your work doesn’t belong in the Louvre

Car Free Day and more on Father’s Day

Things to do in Maple Ridge and Pitt Meadows this weekend

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

Pride flag taken down by Township of Langley

Woman said she was told it was removed from her front yard because of a complaint

B.C. university to offer mentorship program for former youth in care

Students using the provincial tuition waiver program will soon be able to form a community at KPU

Cyclists competing in one of the toughest bike races on the planet pass through Fernie

Divide riders looking strong as they finish first leg of 4160 km race

You might not know these B.C. records are public

Hired a lawyer to file a civil claim? Those are published online

B.C. bus driver loses case to get job back after texting while driving full bus

An arbitator ruled that Tim Wesman’s phone usage was a “a reckless disregard for public safety”

Revamped B.C. Lions set to battle veteran Winnipeg Blue Bombers

The Lions’ first test of the season will be a big one

No business case for Trans Mountain expansion, says former environment minister

Cabinet is expected to announce its decision on the expansion of the Alberta-to-B.C. pipeline by Tuesday

LETTER: British Columbia’s forest industry crisis being made worse

Andrew Wilkinson warns of regulatory overload by John Horgan’s NDP

Most Read