If you need to fill your gas tank in Alberta, the best time to do it was yesterday, and the next best time is today, as fuel prices are skyrocketing with no end in sight.
In the last week, gas prices in Calgary have risen 11.7 cents, while diesel prices have shot up by 23.6 cents. In Edmonton, gasoline has increased by 14.6 cents in the last week and diesel by 18.3 cents.
We spoke with Suzanne Gray, sales and service consultant with Kalibrate, to understand what is driving the surge in fuel prices.
Crude oil prices are climbing rapidly, she explained. Currently, West Texas Intermediate (WTI) is trading at nearly US$90 a barrel. This is up from US$67 a week ago, right before the war broke out in the Middle East.
The main issue is the closure of the Strait of Hormuz, a key shipping route that handles about 20 per cent of global crude supplies.
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The blockage is disrupting transportation and also affecting production, as Middle Eastern producers are running out of storage and reducing output. “This will continue until the strait reopens,” Gray explained.
Gray does not expect the war to disrupt gasoline supplies in Alberta or elsewhere in Canada, as North American refineries are expected to continue producing fuel, so availability should remain stable.
However, the rise in crude prices is being reflected at the pump, and until vital shipping lanes are reopened, further increases are possible.
“I don’t know how high pump prices will go. Crude oil prices may still rise further, and lead to more gasoline pump price increases.”
According to the gas forecasting site Gas Wizard, fuel prices are expected to rise again tomorrow in both Calgary and Edmonton. Regular and premium gasoline are projected to increase by four cents, while diesel could jump by 10 cents in both cities.
So, before you start your weekend, consider a stop at the gas station, because come Monday morning, you might be glad you did!