Fuel prices are inching higher and higher this week, with experts saying they are going to get a little higher before the market finally cools off a bit. (Alex Rawnsley/NanaimoNewsNOW)

By Jordan Davidson

higher prices

‘Probably not the highest price we’re going to pay:’ refinery repairs adding to gas pump pain

Feb 23, 2024 | 4:12 PM

NANAIMO — Mid-Island motorists might have noticed the slow increase in gas prices this week, and experts say it hasn’t peaked yet.

Oil refinery repairs in Washington state and the recent temporary closure of a fuel refinery in Burnaby on Jan 24 contributed to the increase, according to Dan McTeague, president of Canadians for Affordable Energy and operator of GasWizard.ca.

He said a net increase of about 18 cents per litre for wholesale fuel this week also put upward pressure on fuel prices.

“Earlier in the week, (gas prices were at) $1.72.9 per litre, now paying a $1.90, as of tomorrow (Feb. 24) morning. Victoria saw not as big of an increase, but sooner or later retailers are going to have to throw in the towel because they can’t keep continuing to lose what amounts to 10 cents a litre every time they sell it for $1.74 a litre.”

In Nanaimo, gas prices as of Friday afternoon are $179.9 per litre, with a few stations at $177.9 or $176.9 per litre, according to Gasbuddy.com.

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This is the highest price gas has been since early last October, according to McTeague.

He said fuel prices should have started a gradual increase after the Burnaby plant went down, with oil companies knowing it would be out of commission for several weeks.

However, McTeague said after the weekend increase, he doesn’t see any further increases in the near future, noting the market price of oil and futures in gasoline are down, equivalent to about two cents a litre.

But he said it’s unlikely these prices won’t continue to increase in the next week or so as the market adjusts as fuel retailers try to remain competitive.

“The reality is, that this is probably not the highest price we’re going to pay. Gas stations are really holding on for dear life. If it’s $1.90 tomorrow (Sat) morning in Vancouver, and the difference in tax in say Victoria is only 2-3 cents a litre, then you can imagine staying at a $1.72-$1.74, isn’t a winning proposition.”

He said if this trend continues until next week, he would expect another price adjustment in the range of eight cents per litre.

Following this price jump, McTeague anticipates some relief as the market price of oil is down over two dollars a barrel, and the price of gasoline futures fell the equivalent of about two cents a litre.

Vancouver still has the highest fuel prices in North America, according to McTeague, followed by St. Johns Newfoundland, and Victoria in third place, where gas prices are expected to increase to $1.82.9 per litre by Saturday, Feb. 24.

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jordan@nanaimonewsnow.com

On Twitter: @JordanDHeyNow