Metro Vancouver drivers are in for a shock this week as the price at the pump soars to $1.91 per litre, inching dangerously close to the dreaded $2 mark for ‘regular’ gasoline.
The sudden spike in fuel costs can be attributed to the closure of two refineries in the United States, according to Patrick De Haan, head of petroleum analysis at GasBuddy. He warns that ongoing maintenance and shutdowns of refineries in California will continue to cause price fluctuations in the future.
De Haan paints a grim picture for the region, stating that the strict regulatory environment in California is forcing refineries to shut down, leading to increased reliance on foreign supply from countries like Japan and South Korea. This shift in supply chain dynamics is expected to bring more price volatility in the coming months and years.
While the gas price surge is not limited to Metro Vancouver, with Washington state and Oregon also experiencing significant increases, there is a silver lining as the seasonal decline in gas demand during fall and winter may provide some relief to consumers.
Despite the current challenges, De Haan suggests that prices may stabilize as new supply sources are tapped into later this month. However, with the ongoing closures of refineries and potential disruptions to the Olympic pipeline in Washington state, the outlook for gas prices remains uncertain in the long run.
Keyphrase: gas price increase