Consumers across the country can expect to pay more for gas in the coming days, but in British Columbia, there is going to be an extra hit, as an increase in the carbon tax took effect April 1.
The carbon tax is rising 1.2 cents per litre to about 8 cents on a litre of gas.
It’s the first of a series of increases agreed to by the B.C. NDP and Green Party to form a minority government, a 66-per-cent increase over four years.
Predictions are that gas in Vancouver could rise to an all time high of over $1.60 per litre in the coming weeks.
In Cranbrook, gas prices are $125.9, which is right on the national average. That average has increased 6 cents per litre in the last month and is 16 cents higher than it was one year ago.
And another rise is coming, according to Petroleum analyst Dan McTeague at GasBuddy.
“With Canadian pump prices now averaging $1.26 per litre, their highest since October 2014 as Vancouver and Victoria break all-time new records, we’ll soon the switchover to costlier summer blended fuels,” said McTeague. “No corner of the country has escaped the effect of higher fuel prices, and with more on the way, there is now little doubt that its long term effects will be felt on the wider economy with higher prices for both goods and services. Should pump prices remain an average of 15 cents a litre higher for 2018, drivers will have had to spend an additional $250 to $300 just to get by.”
“For Vancouver, Victoria and the Lower Mainland gas prices are to stay at 155.9 and 152.9 cents a litre respectively, while elsewhere in central BC, prices are expected to rise after a weekend of reduced retail margins. For Calgary, Edmonton, Regina, Saskatoon and Winnipeg, an average 4 to 6 cent retail margin restore will take place before the end of the week. For Toronto, Hamilton, Ottawa, London, Sudbury and most of Southern Ontario, a 1 cent average increase is in store, placing prices back to their August 2014 highs, while Montreal, which traditionally sees retail margins restored by Monday afternoon, will see a 10 cent increase back to 139.9 a litre. The Maritimes and Newfoundland, which follow last week’s prices under their regulated price regimes, are set to see a 1 cent a litre hike, bringing prices there more in line with last week’s price results in the rest of eastern Canada,” McTeague predicted.