Gas prices hit record-breaking 179.9 in Greater Victoria, could rise above $2 this summer

After an overnight jump at the pumps, gas prices were sitting at 176.9 a litre at a Co-Op gas station in Saanich. For drivers filling up, that was actually a deal.

"I mean, it sucks," said Will Nemeth, a driver waiting for gas.

"It’s crazy, it’s really crazy," said another commuter, David Fuerst Ackles.

At other stations around the region 179.9 was the norm, and that sets a new record for the highest prices we’ve ever seen for fuel in Greater Victoria.

"You’ve never paid a 179.9 for fuel and you’ve smashed through the records," said Dan McTeague, president of Canadians for Affordable Energy.

"We’re in uncharted waters as far as fuel prices are concerned," he said. "I would expect these prices to continue."

Currently the cost of a barrel of oil is sitting at roughly $95. The last time world markets saw that price was back in 2014.

There are a lot of variables that can affect the cost of a barrel of crude. Right now, the major cause is the uncertainty around the stand-off between Russia and the Ukraine along the Ukrainian border, according to experts.

"Even though Russia isn’t exporting oil directly to Canada, it still has an effect on international markets because these markets are really well integrated," said Werner Antweiler, economics professor at UBC Sauder School of Business.

"Whatever happens in one corner of the world really effects prices everywhere," he said.

Also happening on the other side of the world is a European natural gas shortage.

The European natural gas supply predominantly comes out of Russia. That supply has been falling short which means there is a greater demand for oil as a substitute, which is adding to the global demand.

"All of that has conspired to make gasoline prices more expensive for British Columbians and Canadians," said Antweiler.

Don’t expect prices to come back down anytime soon. COVID-19 restrictions are lifting across the country and with the summer upon us, there is a pent up demand for travel. Both McTeague and Antweiler predict prices could get even higher.

"That would send prices well above $2 a litre for us in Victoria and Vancouver Island," said McTeague.

That news is giving people at the pump a reason to reconsider their driving habits.

"My wife and I currently have two cars and I’m starting to think, like is that going to be feasible going forward? I don’t know," said Ackles.