Canadian drivers who are pumped for holiday road trips should be prepared to pay more to fill up their tanks, as experts predict gas prices to rise over the summer.
With headlines declaring a global oversupply of oil and falling crude oil prices, many consumers have been disappointed that these factors have not led to fewer digits at the pump.
In Vancouver this week, motorists were confronted with gas prices hovering around $1.39 per litre.
"It's insane. Not crazy, it's insane," one man told CTV News.
And in Toronto, drivers were met by rates north of $1.20 per litre.
Dan McTeague, GasBuddy.com’s senior petroleum analyst, says the price surge is happening partly because of a small rebound in crude oil and a 12 per cent drop in the value of the Canadian dollar since last summer.
He says this hurts Canadian drivers because oil is priced in U.S. dollars.
"That's actually increasing the price of gasoline by some eight or nine cents a litre," said McTeague. "That in of itself explains why Canadians aren't able to take advantage of the low crude prices."
He added that prices were also affected after U.S. refineries were forced to cut back production, following breakdowns and tightening supplies.
But McTeague says prices also fluctuate based on the season, and they tend to jump in the spring and the summer as more people drive.
"The summer solstice this weekend means that demand is at its highest," he said.
But Michael Ervin, president of MJ Ervin and Associates, says that prices may have already peaked and are unlikely to climb much more.
"In most markets, what you see now is likely going to be the price of gasoline for motorists throughout the summer," said Ervin.
That means that prices could stand about 15 to 20 cents below last summer's peak.
With a report from CTV News’ John Vennavally-Rao in Toronto.
