'Supply crunch': Metro Vancouver gas prices reach all-time high

Surrey, B.C. -

Prices at many Metro Vancouver gas stations remain at an all-time high Monday, after breaking records across the region over the weekend.

Several stations across the region reached 180.9 cents a litre Sunday and the punishing prices are expected to persist.

The previous record of 176.9 per litre was set last week.

To put that into perspective, drivers in the Greater Toronto Area are paying an average of $1.60 per litre.

Gas analyst Dan McTeague expects prices to climb even higher by the end of the month and with tensions between Russia and Ukraine he predicts gas could spike to $2 per litre.

“That’s because there would be a risk, a war premium at a time when Russia is still the third largest producers of oil behind the United States and Saudi Arabia,” said McTeague.

McTeague says the jump in price is due to a number of factors, including the increasing price of oil.

He says it was $74 at the beginning of the year, but climbed to $93.50 on Friday.

“Much of this is due to the fact that there is a supply crunch," he said. "Demand is surging post-pandemic. And there appears to be very little in the way of supply.”

McTeague says consumers will soon be feeling the pinch in other areas too.

He expects prices will climb at the grocery store as the cost of transporting goods increases yet again.

“While supply issues are a global issue, Canada has to really match up and get back into the business of doing what's done in the past. Produce more oil and gas and release some of the burdens, at least for now, until we can get our economy up and the ship righted after this very long pandemic,” said McTeague.

He says the current prices are not sustainable.

“I think a large number of people out there are probably saying enough is enough. If politicians really want to see these kinds of prices, I would suggest they may want to choose another career,” he said.

To save at the pump, experts suggest avoiding using premium if your vehicle doesn’t need it.

Fill up on weekends and late in the evenings and check gas price apps for cheaper options in your area.