Once again, motorists were greeted with climbing gas prices at the pumps Friday morning all across the Maritimes.
“It’s just, it’s hard. It’s hard for people to get by with these gas prices. While with the price of anything,” said motorist Kathy Isaac.
“I’ve got a smaller vehicle, so for me it’s not as bad, and for people who drive big trucks that cost $150 almost $200 to fill … that’s hard.”
Nova Scotia saw a 3.9 cent increase, bringing gas in the Halifax area to a minimum of 163.9 cents per litre.
Prince Edward Island jumped 6.9 cents to a new minimum of 169.9 cents per litre.
New Brunswick climbed 4.1 cents to a maximum of 164.2 cents per litre heading into the weekend.
“I’m an older man, 59 years old, I remember when you could put $2, $3, $4 in at the gas tank and go somewhere; $2 is not getting you anywhere folks,” said motorist Carl Silvea.
“I put $20 in every day. I’m a regular, they know me. I can’t afford to put anymore in.”
However, relief – at least in one form – is expected on April, when the consumer carbon tax comes off the pumps.
“That’s about 17.6 cents a litre that should roll back fairly quickly,” said Patrick De Haan, the head of petroleum analysis at GasBuddy.
He says, even though the carbon tax is set to come off Tuesday, several other factors still play a role in the price motorists pay at the pump.
Right now that includes refinery maintenance ahead of the summer season, the switch from winter to summer gasoline, which costs more to produce, and demand.
Overall, he says prices usually climb 10 to 30 cents per litre between February and May and he expects another increase in mid-April, even with the reduction of the carbon tax.
“There’s a lot of levers that move gas prices. Those levers are all moving at the same time, so yeah, you’re going to see the 17.6 cent rollback, but if the price of oil suddenly shoots up $10 a barrel, that is partially going to offset the 17.6 cent litre saving,” he said.
“Motorists should still expect gas prices to move, but generally they will be more affordable, and come say mid-May or June, July and August, motorists will be able to say, ‘Well if it wasn’t for the carbon tax pause, the price that you see at the pump would be 17.6 cents a litre higher.”
Even still, drivers remain cautiously optimistic that Tuesday will relieve some pressure at the pumps.
Huyuk Jin Kwon, who owns Lakeville Variety and Gas Bar in Moncton, N.B., says his customers have been asking him about the carbon tax and the removal of it.
“They are very happy and I think they are waiting, they are waiting and they expect some price down,” he said.
De Haan points out there might be some software details that delay the price adjustment, depending on the gas station.
He says depending on the point-of-sale system, some stations might adjust their price right at 12:01 a.m. where others might have to wait until 8 a.m. or 9 a.m. when staff are physically in the building.
However, even still, he expects it to be fairly automatic for drivers.
“If they don’t have to capture that tax, they can pass it along very easily and since it’s not on the fuel itself, this is not something that should take more than a couple of days,” he said.
