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

Surrendered Comox Valley cats nearing adoption through SPCA

Community rallies with dozens of offers of adoption

Shawnigan Lake residents rally to rebuild memorial bus shelter

Nick’s Stop is a reminder for all to slow down

Purple Day marks long journey for Gorge resident

Legislative Assembly to recognize epilepsy on Tuesday

Ice climbers scale Canada’s tallest waterfall on Vancouver Island

Ice climbers Chris Jensen, Will Gadd and Peter Hoang made history

Tofino woman beseeches town for nude beach

“They may enjoy a surf and then walk around naked and just be free.”

Prime Minister Trudeau comes campaigning in Nanaimo

A day after announcing a May 6 byelection date for Nanaimo-Ladysmith, Justin Trudeau visits city

Inspirational Vancouver Island youngster dies after battle with brain cancer

Kaiden Finley ‘was seriously the strongest 11-year-old’

Indecent caller handed 18-month conditional sentence

Vancouver Island man pleaded guilty to making indecent phone and video calls to women across B.C.

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

Victoria Police Department’s K9s help make three arrests

Police Services Dogs Alpha and Zender have had a busy few weeks

Victoria crash threatens shipyard’s schedule for new coast guard ships

Delivery of the vessel was already years overdue

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Flu outbreak hits several facilities from Victoria to Parksville

42 people diagnosed at facility since March 15

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

Most Read