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This article was published 25/10/2017 (1706 days ago), so information in it may no longer be current.
The price of a litre of regular gas jumped nearly eight cents on Wednesday at a number of Winnipeg stations, but the extra pain to the pocketbook may be short-lived.
The senior petroleum analyst for GasBuddy.com, Dan McTeague said pump prices could be back to about a dollar a litre by the middle of next week.
He said rising wholesale prices over the last three weeks are what prompted some local stations to raise their prices overnight to 106.9 cents a litre.
However, on Wednesday morning there was a significant drop in gas prices on the Chicago futures market, he said, which will start driving down wholesale prices over the next few days.
"We are going to see a lot of 106.9’s over the next several days," he said.
"But as early as Friday or Saturday, you could see them (pump prices) reversing by as much as one or two cents a litre, and between now and this time next week, I would think you’re going to be back towards a dollar a litre."
McTeague said with the wholesale price of gasoline climbing by about eight cents a litre over the last three weeks, local gas stations had little choice but to boost their pump prices.
"If I’m a gas station in Winnipeg, as of tonight it’s costing me 96.5 cents a litre to buy my gas," McTeague said. "So a scenario that sees me selling it for 98 cents a litre when it’s costing met 96.5 (cents) to buy it is really a recipe for bankruptcy."
He said some local stations were still holding off on raising their prices, but he predicted they wouldn’t last much longer.
"At some point you have no choice. You have to come up for air. You can’t continue selling gasoline at a loss. You just can’t sell that much pop and chips to make up the difference."
He said Winnipeg motorists have been fortunate. Thanks to competitive forces and a lower provincial excise tax on fuel, they have been paying some of the lowest gas prices in the country.
McTeague also warned they’ll soon have to get used to paying more at the pump because the new federal carbon tax on fuel takes effect on Jan. 1.
He said that new tax will add 2.45 cents to the cost of a litre of gas sold in Manitoba and even more for diesel and natural gas.
And the new federal carbon tax is scheduled to climb by another 2.45 cents on each subsequent Jan. 1 through to 2022. By then, it will have said 12.2 cents per litre to pump prices in the province, he said.