Gas prices expected to continue climbing

Those trips to the pump will be getting even more expensive.

But according to one analyst, the main reason behind the climbing prices is merely speculative.

Roger McKnight, the chief petroleum analyst at En-Pro International, says there are a lot of ‘what-if’s’ lately when it comes to refuelling.

“There’s hardly any structure to it right now,” McKnight said. “People are assuming that the (COVID-19) vaccine will work and that the vaccine rollout will be efficient and that this will get the economy going again and get people back on the road.

“It’s pretty well guesswork at this moment in time.”

McKnight also noted the price of crude has gone up 50 per cent since the start of January and almost 70 per cent since November, giving a jolt to gas prices in the process.

With the vaccine rollout in full swing, the thought of hitting the road is an enticing idea, something that McKnight says people will be paying the price for.

“Once people get the confidence that everything is coming back to normal and when you have $1.9 trillion US going to the U.S. economy, it’s going to stimulate people to get back on the road and drive prices up,” he said. “The demand for gasoline will go up.”

Even though there is a lot of speculation right now, one thing for certain is that on April 1., you can be guaranteed that your trip to the pump will be a little bit more expensive.

“The carbon tax is going to be increased and that will increase the price of the pump by about 2 1/2 cents a litre overnight,” McKnight said. “Those numbers will get higher in time.”