Drivers who were saving some money at the pumps during the COVID-19 crisis won’t be keeping as much cash in their pockets this month, as gas prices rise again.
According to GasBuddy, as of May 7, gas prices are up to 105.9 cents per litre at most stations. That is almost a 10 cent jump from April 17, when gas prices were around 96 cents per litre.
An 18-month average retail price for gas in Victoria. (GasBuddy)
Patrick De Haan, head of Petroleum Analysis with GasBuddy, said oil and whole gasoline prices have gone up as demand starts to increase.
“Yesterday’s U.S. demand was up nearly 8.5 per cent from a week ago,” De Haan said.
“Gasoline inventories have posted two straight weekly declines now, contributing to the higher prices. I don’t think we’ll see us get where we were prior to COVID for perhaps a few months if not longer- all depends on how quickly we’re able to move on and return to normal.”
The reduced demand for oil and gas during the pandemic has been coupled with a price war between Saudi Arabia and Russia, leading to a plunge in oil prices.
Prime Minister Justin Trudeau says Canada’s oil and gas sector will play a critical role in both the recovery from the COVID-19 crisis and the transition to a greener Canadian future.
Trudeau says he doesn’t agree with claims by Bloc Quebecois Leader Yves-Francois Blanchet and former Green Leader Elizabeth May that plummeting oil prices in recent weeks are the final sign the industry cannot and should not be saved.
Both leaders would rather the government instead pour economic recovery money into transitioning workers in Alberta’s oil industry to renewable energies.
On Wednesday, Premier John Horgan released B.C.’s plan to gradually restart the economy amid the pandemic, moving the province into its “new normal”.
With files from The Canadian Press
Alexa Huffman
