Gas prices could rise above $2 a litre in Manitoba by next week: forecaster

CTV National News: Happy Holidays at the pumps Bill Fortier reports on how an excess amount of gas and oil has created a joyous moment for drivers hoping to fill up their tanks.

For those wincing at the sight of current fuel prices in Manitoba, one expert said it is about to get worse.

Dan McTeague, president of Canadians for Affordable Energy, said prices at the pump are expected to soar above $2 a litre as early as Monday.

“It’s just a matter of when gas stations throw in the towel,” McTeague said.

CTV News Winnipeg has observed prices this week as high as $1.96 a litre in both Brandon and Winnipeg.

McTeague expects prices to jump by five to 10 cents more per litre in the next few days.

Fuel prices in Manitoba are currently among the lowest averages in the country, with many provinces at over $2 a litre. This includes British Columbia where the average price is $2.21 a litre and Newfoundland where it’s $2.12 a litre.

McTeague said the surge is due to a global supply shortage.

“It's been a long time coming. We've all felt that it was important to reduce our carbon footprint. To do that, we thought it was wise to cut pipelines in this country, tell oil companies to not invest in making new oil available,” he said.

“We were extraordinarily deaf to the reality that what we want to have happen and our actions are not in sync.”

He said Canada’s weakened dollar, paired with market destabilization brought on by Russia’s attacks on Ukraine, are all leading to a cycle of inflation that will hammer the bottom lines and purchase powers of average Canadians.

“There is no ceiling. It might moderate. It might come down a little bit, but we are dealing with now a heavier demand for summer,” he said. “There are some who believe there will be demand destruction, but that hasn't become evident yet. What is evident is people are saying ‘we need to get to work,’” he said.

CAR CO-OP SIGNING UP MEMBERS AT ‘RECORD-SETTING PACE’

Philip Mikulec, managing director of Peg City Car Co-op, said the car-sharing program has continued to meet or surpass member intake projections over the last few years.

Notably, the service has also set a record-breaking pace of new sign-ups over the last few months.

However, Mikulec does not credit surging fuel prices as the only driving factor for new customer sign-ups, but as one of many.

“I'm sure that the fuel prices and increasing cost of use of vehicles, also supply chain issues with vehicle manufacturers are all a factor as to why people are signing up more for car sharing,” he said.

Mikulec added his customers are also feeling the pinch at the pump, as co-op members pay a fuel surcharge. However, the co-op model allows the cost to be spread out among users.

“They're born out and spread out by a lot of members who use the service intermittently. So if you use a car to go grocery shopping a few times a month, you're not experiencing that price increase the way somebody who, say, drives every day and owns their own car,” he said.

- With files from CTV’s Kayla Rosen