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Gas prices are once again on the rise and it looks like they could be heading to where they were earlier this summer.
Dan McTeague, a gas price analyst and president of Canadians for Affordable Energy, said the price at the pump could rise to $1.90 or $1.95 per litre this winter thanks to the ongoing war between Ukraine and Russia.
“It could get worse. We’ll have to watch what happens in Europe as they run out of natural gas and are burning coal, oil and diesel to make up the difference,” McTeague told Gormley guest host Taylor MacPherson on Monday.
According to Gasbuddy.com, gas prices in Regina and Saskatoon right now sit at around $1.76 per litre.
McTeague also blames a weak Canadian dollar for why the price is going to continue to go up.
“The biggest problem in my view is yes, the taxes suck and I oppose carbon taxes, but that aside, (it’s) the Canadian dollar. It’s amazing that it is has dropped so significantly — (it’s now) $1.37 to buy a U.S. dollar. All of our goods and commodities in Canada are based on U.S. reference prices, not the Canadian dollar,” he explained.
McTeague doesn’t think things will go very well for Canadians if the dollar continues on its current trajectory.
“It’s not going to end very well if the Bank of Canada continues to say, ‘We have to fight inflation.’ Maybe you should stop your green policy, stop the policy of blocking our No. 1 export, which is gas and oil, and maybe providing countries like Germany (with) the natural gas they need,” McTeague said.
“While some people will come out and say, ‘That’s contrary to our climate goals and ESG goals,’ Canada ranks No. 1 in the world on the ESG scale,” he added.
“My view, as a Liberal of almost 40 years, is that this particular government is the main reason why Canadians are facing the inflationary cycle that they are and I don’t think there’s a whole lot the Trudeau government wants to do as opposed to what it should do, which is resurrect and strengthen our oil and gas sector and not kick it in the teeth.”
McTeague also suggested the price of diesel could rise by 25 cents per litre.
He adds the only way he sees gas prices falling is if there is a recession.
McTeague mentioned he hasn’t seen the market this volatile in more than a decade.
“Probably 2008 was the last time I saw something like this,” he said. “This is far more longer-lasting and you’ve got two factors. One is supply and demand and then you have the recession obsession crowd which believes at some point down the road there will be a recession so therefore we have to undervalue these very important fuels that run our world.”
McTeague thinks gas will also continue to go up come the springtime when more percentage points are added to the carbon tax.
