Gas Prices Are Going Way Up in Mississauga

The Vayu report noted that the wholesale gas prices were now back at levels not seen since last February. Thinkstock

The Vayu report noted that the wholesale gas prices were now back at levels not seen since last February. Thinkstock

According to GasBuddy dot com, prices in Regina are already hitting the 109.9 mark.

Gas prices are expected to jump 14 cents in Southern Ontario over the next 24 hours, as flooding from Harvey continues to shake the North American oil market after the storm shut down refineries in Texas and disrupted pipelines across the United States. Marie days before the long weekend and as of Friday at around 5:30 p.m. prices were as high as 135.9 cents per litre.

Across Canada, gas prices are up an average of 9.5 cents compared with last week.

According to gasbuddy.com, the average retail price of gasoline in Ontario has risen from 107.5 cents per litre on August 28 to 120.9 cents per litre on September 1.

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"The big issue? Shortages in the US northeast".

The uncertainty about gasoline production could stretch into a couple of weeks, he said.

He said any fluctuations in retail prices, which were hovering at either 99.9 cents or 107.9 cents at many local outlets on Friday, would be as a result of gas stations adjusting their retail margins.

Gas retailers in Canada are not facing a potential shortage due to the slowdown in Texas production, but Canadian prices depend on USA prices, with Eastern Canada taking its cue from New York, Albany, Syracuse and Buffalo, and much of Western Canada looking to Chicago and Minneapolis.

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That, in turn, would reduce supplies and drive up prices in Western Canada. "And simply because buyers in the States would be looking to Canada for supply, we're seeing higher wholesale prices in Eastern Canada as well", Ervin said.

"Some of the refineries in Canada are going through fall maintenance, and that means we just don't have any capacity".

And the price difference is even more pronounced off Montreal island, particularly on the South Shore, the Laurentians, the Gatineau area and eastern Quebec.

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