Gasoline prices surge past $2 per litre

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This article was published 06/06/2022 (1451 days ago), so information in it may no longer be current.

Gas prices in Winnipeg surged beyond the $2 a litre mark on Monday, setting another local record at $2.07.9 for one litre of regular gasoline.

On Monday, Shell stations posted regular unleaded gasoline at $2.07.9. It was on par with Canada’s average of $2.072 per litre, according to GasBuddy, a fuel tracking website.

“What goes up might come down,” said Dan McTeague, fuel analyst and president of Canadians for Affordable Energy.

Prices could drop Thursday or Friday if markets stagnate, McTeague said.

Late last week, Winnipeg gas stations began to pay about $1.95 per litre of gasoline, he said. The wholesale price per litre was $1.507, and taxes added another 45 cents, he said.

“(There was) not a lot of margin in the past week, so it looks like (gas stations are) looking to recover some of that,” McTeague said.

Stations typically keep a retail margin of 11 cents per litre, which in part covers operational expenses, McTeague said.

Fuel prices might slightly decline in the short-term because oil prices dropped Monday, he said.

Still, $2 a litre could be the norm for the summer.

“I think the likelihood of (gas prices) going higher is greater than (them) falling,” McTeague said. “This is probably where we’re going to be for the foreseeable future.”

Russia withdrawing from Ukraine might bring prices down. A global recession could also knock costs back, McTeague said.

“There’s nothing here to suggest prices will go anywhere,” he said.

A shortage of supply, pipeline interruptions and Canada’s divestment from oil and gas have played roles in higher prices, he said.

Helen Kelly stopped at a Shell off Pembina Highway Monday afternoon. A $40 fuel-up might have filled half her Ford Escape’s tank last year, she said. Now, it fills a quarter.

“(Prices are) just jumping all the time,” Kelly said.

James Pullar, at the same gas station, said he’s driven his premium gas-fuelled SUV for 11 years. He called the price spikes “unfortunate but pretty uncontrollable.”

“It does make you think more about electric or hybrid,” he said, adding he’ll fly to Regina to visit family instead of driving because the cost difference is small.

Last year, Manitoba averaged $1.274 per litre of regular gas. The Shell price Monday was 80 cents higher.

British Columbia, Ontario, Quebec and the Maritimes posted averages above $2 per litre Monday, according to GasBuddy.

British Columbia was the most expensive at $2.226 per litre.

gabrielle.piche@winnipegfreepress.com