If you’ve been watching the gas pumps closely, you might have noticed a roller coaster ride in fuel prices in the Peace Region.
Experts say various factors, including the carbon tax, are contributing to the fluctuation that is likely to drive prices even higher in the coming months.
“I would say on the diesel side, look for an average increase of about 10 to 15 cents a litre by the time we finish the end of February, beginning of March. Look for gasoline likely to stabilize at the price it is today, but then go up another 5 cents a litre on average for the month of February,” said Dan McTeague with Canadians for Affordable Energy.
Gas prices averaged 1.73 dollars per litre for regular in Fort St. John on January 21st. McTeague says those increases were inevitable, given cheaper wholesale gas prices to start the month, a weakening Canadian dollar, and current government policy.
“Government policies have a lot to do with driving up the price of energy and have very little to do with the cost as a result of the industry or as a result of competition,” McTeague told CJDC-TV.
In B.C., the price is exacerbated by carbon pricing. According to McTeague, the carbon tax adds 20 cents per litre once GST is factored in, in addition to the Low Carbon Fuel Standard adding another 20 cents. Meanwhile, gas station franchisees control approximately five to seven cents per litre.
“As long as voters continue to support green policies that are damaging affordability in this country, they can continue to pay these unusually high prices no matter what shenanigans are committed by gas stations who hold off until the bitter end before they have to raise prices,” said McTeague, who notes that those increases can be dramatic.
PetroCanada lists its rack prices in Edmonton and Prince George, where the region gets the majority of its fuel supply, at 91.16 and 105.46 cents per litre, respectively, for regular this week.