Gas prices expected to increase as summer approaches
Get ready to pay more at the pumps this summer, even more than you are now.
There are a lot of reasons, temporary refinery closures, an increase in the price of crude oil and the low Canadian dollar.
Experts are predicting it will be the most expensive driving season since 2014, and it will affect more than just your mileage.
As gas prices climb, consumers are forced to make tough decisions.
“You’ve only got so much disposable income,” says Jon Erlichman, BNN Bloomberg host, “so how are you going to spend, a lot of times people have to cut back on their spending elsewhere. You might not get a haircut as frequently, you might not get that pair of shoes.”
Right across the country, the numbers are climbing, hitting record highs in some cities.
From the high 120s here in the Maritimes, to a staggering 148 in British Columbia, and with Vancouver hitting 160 this week.
Experts say it’s only getting worse.
“We’re still not out of the woods,” says Dan McTeague of gasbuddy.com. “We will be heading towards higher prices as summer demands starts in earnest in three and a half weeks, with Memorial Day in the U.S. and here with Victoria Day. That’s the official launch of getting out where you need to go.”
“Gas prices being higher is something the Bank of Canada is going to watch,” adds Erlichman. “It could be more inflation for the economy and if that’s going to happen; the Bank of Canada has to think about raising interest rates. Higher interest rates can mean higher mortgage rates, or higher costs, borrowing costs for any debt you have.”
With files from CTV Atlantic’s Heather Butts.