Metro Vancouver gas prices edge toward $2, breaking 2nd record in 2 days

For the second day, Metro Vancouver gas prices have soared to another record high, and it's expected they'll go up even more in the coming days in a row.

Some gas stations posted a price of 194.9 cents per litre for regular on Thursday, a day after a new record of 186.9 was set. The previous record of 183.9 was set just days before that.

The Vancouver region regularly sees the highest gas prices in the country and, according to the Canadian Automobile Association, B.C. had the highest average price across the country Thursday at 178.4 cents per litre.

But prices are expected to go even higher, and may reach $2 in the next few days. Analysts explain there are several reasons for the price increase, including high demand and Russia's invasion of the Ukraine leading to sanctions.

"Oil and gas are going to continue to be in very high demand and very short supply, which means the only thing it can give right now is our prices, and they will continue to rise," Dan McTeague, president of Canadians for Affordable Energy, told CTV News Vancouver.

Drivers should also get used to paying more with the provincial carbon tax rising by one cent per litre on April 1.

McTeague said this will likely have a ripple effect with higher transportation costs leading to an increase in food prices. And making matters worse was Wednesday's Bank of Canada interest rate increase, McTeague said.

"All this bad news is coming in a big batch, very quickly, very suddenly, and very few families can afford this," he said.

Asked about the carbon tax increase Thursday, B.C. Premier John Horgan noted the federal government's mandated minimum charge of $50 per tonne of CO2 emissions takes effect next month.

"I'm not passing the buck when I say that," he said. "We have committed as a government in two election campaigns to get to $50 a tonne for taxing pollution, and we intended to do that come April 1."

Experts and activists have called carbon taxes an important aspect of addressing climate change, as they can encourage individuals and businesses to adopt greener practices.

Horgan also stressed that the tax increase pales in comparison to a recent "18 cent a litre increase overnight" that was beyond the province's control.

He said the government will be monitoring price activity through the B.C. Utilities Commission for signs of gouging in the wake the Russian invasion.

"I think British Columbians would be very unhappy if they saw … that companies were taking advantage of international uncertainty to pad their profit margins," he said. "If there's something more that we can do, we'll certainly take action."

A previous investigation by the BCUC in 2019 was unable to account for a 13-cent disparity between gas prices in B.C. and other jurisdictions, and found the local wholesale market "not truly competitive."

Analysts recommend saving on gas prices by using a gas-tracking app to find the best deal, or to try filling up later in the day when prices often decrease. 

With files from CTV News Vancouver's Regan Hasegawa