'Got the perfect storm shaping up': Gas prices expected to climb even higher on Vancouver Island

With gas prices in the capital region hitting record highs of 216.9 cents per litre, people are making adjustments in their lives to compensate.

"Well regrettably we’ve got the perfect storm shaping up, it’s all hitting the fan at once," said Lindsay Meredith, marketing strategy and economics professor at Beedie School of Business at Simon Fraser University.

Meredith says you can blame these high prices at the pumps on a lack of supply.

While Canada doesn’t import oil products from Russia, we do from the United States, and when that country is short, less supply will be heading north to Canada, says Meredith.

"Today, Biden announced a ban on the importation of Russian oil products," he said Tuesday. "That’s contributing to a shortage of gas in the United States and it will in Canada."

That ban stems from Russia’s invasion of Ukraine, but Meredith says other conflicts are adding to the global shortage.

"I don’t think we can look for a lot of help (from) our Saudi friends in OPEC to flood the market," said Meredith. "They are busy trying to recover from things like COVID-19, as well as battles with the Yemenise."

"Finally the Venezuelans are not really on-tap at the moment big time either," he said.

That leads us looking to our domestic production for relief.

CANADIAN EXPORT CHALLENGES

"We could double our production in a very short period of time," said Dan McTeague, president of Canadians for Affordable Energy.

Although, McTeague says that won’t happen because Canada is short on its own refining capabilities.

He says that Canada also lacks sufficient pipelines to get its crude oil to other markets that need it, which would boost world supply.

"If half a million barrels could make their way into Europe or Asia’s market right now, oil wouldn’t be trading for $1.27 for Brent (crude oil) or $1.24 for WTI (crude oil)," said McTeague. "It would be down to $110."

FUTURE PRICES

On Tuesday, B.C.'s Liberal opposition continued to call on the NDP government to provide relief to drivers by lifting provincial fuel taxes. It's a move Alberta announced it would be doing as of April 1.

"The reality is, the issue of soaring gas prices is a global phenomenon," said Mike Farnworth, B.C.'s Minister of Public Safety and Solicitor General, in a question period.

"It’s not restricted to British Columbia, it’s right across the country, all over North America and it is related directly to Russia’s invasion in Ukraine," he said.

McTeague predicts prices will continue to climb over the weekend.

"You will be up to 214 cents a litre by Saturday or Sunday," said McTeague.

Looking long term, Meredith predicts if world tensions continue, prices could climb even higher than that.

"Say, between the $2 and $3 range," said the SFU professor.