Gas could rise by 5 cents this week, 5 cents the week after: McTeague
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A number one power worth knowledgeable says fuel costs might go up one other 5 cents throughout Canada if Russia decides to accentuate its assault on Ukraine or declare all-out conflict come Monday.
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Dan McTeague, president of Canadians for Reasonably priced Power, says Might 9 marks Victory Day in Russia and will show pivotal in relation to the trajectory of the conflict in Ukraine.
McTeague says fuel costs might go up an extra 5 cents per litre subsequent week as nicely if the scenario worsens in Ukraine and as Canadians gear up for the Might lengthy weekend, which is often thought-about the unofficial begin of summer time.
The common worth of fuel in Canada is pushing in the direction of $1.97 per litre, with British Columbians feeling essentially the most ache on the pump, shelling out a median of $2.06 per litre.
Vancouver is seeing $2.22 per litre, Victoria residents are paying $2.17 per litre, drivers in Montreal are coping with $2.07 per litre, and costs in St. John’s stand at $2.03 per litre.
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However McTeague says even when the conflict in Ukraine involves an finish within the close to future, excessive fuel costs are anticipated to remain in place for some time as a result of sanctions will doubtless stay on Russia’s power sector.
The provision-demand challenge that was weighing on the oil business lengthy earlier than the conflict broke out isn’t going to go away both, he provides.
“(Some individuals assume) all that is due to Russia, however nothing could possibly be farther from the reality,” he stated. “It’s a matter of fundamentals. There was much less provide and extra demand earlier than and that hasn’t modified.”
McTeague additionally stated the summer time season will play a job in pushing fuel costs larger as extra individuals hit the street, discover and journey.
“In the course of the summer time, gasoline costs are likely to detach from oil costs — they go a lot larger,” he stated.
He additionally factors to a weaker Canadian greenback as a contributing issue.
