Motorists jumped Thursday morning when they saw the price of gasoline at the pump, but several reasons explain this change at gas stations, according to the vice-president of the Canadian Fuels Association for the east of the country, Carol Montreuil.
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Prices are now more than $1.90 per liter of gasoline in several stations in the metropolis, when it was only $1.75 the day before.
“It doesn’t seem like retailers have very high margins today. […] The big difference at the moment seems to be on the refining side, this is where the margin has increased very quickly,” noted Nicolas Ryan, public affairs director at CAA-Quebec, in an interview with LCN.
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Although some have mentioned a switch from winter to summer fuel, this would not be a factor in this case, explained Carol Montreuil to Hi helloThursday morning.
“I have been seeing changes in the type of gasoline for more than 20 years, whether in April or October, and these are usually marginal impacts, this is not what explains a change like today,” he mentioned.
Geopolitics would once again be the number one factor in a price fluctuation like the one observed since the morning.
“The sum of Ukraine, the sum of Gaza, the tensions around what Israel’s response to Iran will be, we know, this creates an enormous risk on the markets. They hate risks and this risk is being felt at the pump today,” said the specialist.
Oil on the rise since December
We should also not forget to take into account the price of oil, not just over the last few days, but since mid-December. The barrel was then at $75, but is now around $90.
“That is an increase which is extremely significant, and [elle] is the sum of all these conflicts, it had not yet been reflected on the market,” underlined Mr. Montreuil.
Another reason remains the six taxes applied to consumers directly at the pump.
“These taxes have been gradually increasing for several years, we have had further adjustments in recent months,” he indicated.
It is still impossible to know whether the price will hold, increase or fall over the coming days, depending on the conflict with Iran or the possibility of an economic slowdown.
“These two scenarios, no one knows which one will come true,” said Mr. Montreuil.