Gasoline prices could rise another five cents a liter if Russia steps up its attack on Ukraine, an expert fears.
Posted at 5:16 p.m.
According to Canadians for Affordable Energy president Dan McTeague, May 9 — a public holiday in Russia to commemorate the victory over the Nazis in World War II — could be a pivotal point in the current war.
He says gas prices could rise if the situation gets worse in Russia. In addition, a three-day weekend is coming to the country since Victoria Day (in English Canada) and National Patriots’ Day falls on May 23.
The average price of gasoline is $1.97 per litre. However, the price exceeds the national average in various cities: Vancouver ($2.22/litre), Victoria ($2.17/litre), Montreal ($2.07/litre) and St. John’s ($2.03 /liter).
Mr. McTeague argues that even if the war ended in Ukraine, prices would remain high for some time, since it is unlikely that sanctions will be lifted against the Russian energy sector.
The supply problems experienced by the oil sector before the start of the conflict have not gone away, he adds.
“Some people think this is all because of Russia, but nothing could be further from the truth. It’s a fundamental principle: supply is less than demand and that hasn’t changed. »
According to him, the arrival of the summer season will not slow the upward trend, as more people will take the opportunity to travel.
“In summer, the price of gasoline tends to detach from oil prices. They are getting higher,” he points out.
Another factor that contributes to the increase in the price of gasoline, judges Mr. McTeague: the weakness of the Canadian currency.