Gas prices surging in Metro Vancouver
Published Tuesday, February 21, 2012 3:40PM PST
Analysts are warning Metro Vancouver drivers to brace themselves to pay more than $1.50 for a litre of gas by this summer.
On Tuesday, the average price of gas in the region was just over $1.34 per litre, up more than six cents from a week ago and 10 cents from a year ago. That spike has yet to be seen in the rest of Canada.
Keith Schaefer, president of Oil and Gas Investments Bulletin, said the sudden jump has left him scratching his head.
"It sure is suspicious," he told CTV News.
"Here in Canada, really in all of North America, we are swimming in oil."
Business analyst Michael Levy says B.C. may be leading the charge for Canadian gas prices.
"The rest of Canada will catch up, but I think this is just a taste of what's to come," he said.
As the U.S. economy improves, demand will go up, especially as the summer driving season approaches, he said. Economic sanctions over Iran's nuclear program could also play a role.
"The $1.50 a litre that we had a few years ago might be a fond memory this year," Levy said.
But both Schaefer and Levy believe that there is a tipping point for gas prices in Metro Vancouver.
"Could it hit $1.50? Sure," Schaefer said. "But at some point in time the market says uncle. Where does it say uncle? I think it's going to say it pretty quickly."
With a report from CTV British Columbia's Shannon Paterson