A gasoline shortage in southeastern B.C. is about to hit drivers in the wallet.
Gas in Greater Victoria is poised to skyrocket by more than ten cents per litre over the next day or two, according to analyst Dan McTeague of GasBuddy.com.
An increase in the wholesale price of fuel will cause prices in the region to spike to around 142.9 cents per litre, far more than the 131.9 cents per litre most gas stations were selling for on Monday.
"These prices have been passed on as of last week. We saw what amounts to on Friday, a 3.7 cent wholesale price increase to gas stations here in Victoria," said McTeague. "They're selling gasoline right now for 131.9 but with that increase, it's costing them 129.9 to buy their fuel. You can't run a gas station on two cents a litre."
He said gas stations traditionally need to charge 10 to 12 cents per litre above wholesale for a healthy retail margin, and that he expected most stations to raise their prices accordingly within 24 to 48 hours.
The price spike comes as the region grapples with a gas shortage caused by several factors, according to McTeague.
The Burnaby Refinery, owned by the Parkland Fuel Corporation, is currently in a five-week maintenance mode and is not producing any gas.
That means stations have been "borrowing" gas from U.S. refineries all the day down to San Francisco.
McTeague also noted that the Trans Mountain Pipeline is at capacity, which has also contributed to the region's gas shortage. The twinning of that pipeline has been the subject of a fierce debate in B.C. between those who want to see it built to triple capacity and create jobs for Canadians, and those who feel the increased capacity could lead to environmental disaster on B.C.'s South Coast.
"Unless someone wants to – and I'll wade into this – magically build another pipeline beside it that can devote itself strictly to crude, and allow more gasoline, we in the Lower Mainland…are going to continue to be price takers," said McTeague. "There's just no extra supply available out there."
As for when the price spike is set to end, McTeague said higher prices could actually be the "new normal" for Victoria in 2018.
"Unfortunately if the current situation continues it looks like $1.42 is the price you can expect to pay," he said.
As of Monday afternoon, two gas stations in Victoria were already selling fuel for 142.9 cents per litre: The Petro-Canada on Shelbourne Street and the Chevron on Hillside Avenue.
