Prices at the pump are destined to head back up courtesy a number of factors ranging from supply, to demand, to seasonal pressures. (Alex Rawnsley/NanaimoNewsNOW)

By Alex Rawnsley

same old story

‘We could be flirting with $1.95:’ oil prices and summer season pushing up Nanaimo pump prices

Apr 6, 2023 | 5:29 AM

NANAIMO — Fill up, now.

Following a few cents per litre bump in the cost of gasoline after April 1, which was linked to a tax hike and not an April Fools joke, is just a preview of coming attractions according to gas price analysts.

Gasbuddy’s Patrick de Haan said several factors are coming together including a rebound of oil prices, a surprise cut in production announced recently by the Organization of the Petroleum Exporting Countries (OPEC) and the time of year.

“As we transition to more expensive summer gasoline, and we see demand going up as temperatures start going up, we’ve got the trifecta.”

The expectation is over the next few weeks, leading into the May long weekend, prices could crest another 20 to 30 cents per litre.

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Across the central Vancouver Island region on Thursday, April 6, prices for a litre of gasoline ranged from 161.9 cents per litre to 175.9 cents per litre.

De Haan said the next major price driver is a seasonal switch to summer gasoline.

“Most gas bars will likely start passing along that summer gasoline as they themselves are filling their tanks and getting rid of any remaining winter gasoline. By the end of the month, I do expect that almost every gas bar will be selling just that summer blend of gasoline.”

It means a return to $2.00 per litre isn’t out of the question.

“We could be flirting with $1.95, maybe $1.99…but if any refinery issues do develop or any curveballs are thrown, we could be just slightly above the $2.00 per litre mark.”

Conversely, should interest rates push up or some favourable financial news develop, it could shoot prices down a little lower than expected.

–with files from Jon de Roo, 97.3 The Eagle

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