As gas prices rise above $1.30 per litre in some parts of Metro Vancouver, savvy drivers are heading to Aldergrove, where competition with the U.S. and nearby cities is forcing prices down.
Near the Abbotsford-Aldergrove border, gas prices are about 10 cents cheaper than elsewhere in the regional district.
Aldergrove is part of Metro Vancouver, so gas stations have to charge the 15-cent transit tax on fuel. But the tax ends where Abbotsford begins at 276 Street.
"All the gas stations beyond that can start charging a lower rate, so the gas stations on this side of 276 simply won't sell gas unless they compete to their best ability," said Bruce Heslop, president of the Aldergrove Business Association.
Businesses in the area are also forced to compete with the United States, just a six-kilometre drive away..
"How do they stay in business? That's a good question -- it must be very difficult," Heslop said.
Jumps in price at the pumps are part of a long-term trend, but the most recent spike is linked to unrest in North Africa and the Middle East.
If protests expand to Saudi Arabia, oil supplies could be disrupted and gas prices could rise even higher, according to Keith Schaefer, publisher of Oil and Gas Investments
"I think this coming Friday or Thursday could be one of the real hot spots, because that's when Saudi Arabia is going to have one of its days of protest," he said.
With a report from CTV British Columbia's Bhinder Sajan
