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Hurricane Harvey impacting local gas prices and causing shortages

02 September 2017, 01:20 | Melanie Burgess

Harvey makes second landfall in Louisiana residents urged to go into ‘survival mode

Harvey makes second landfall in Louisiana residents urged to go into ‘survival mode

The gulf coast of Texas is about 3,000 km away but we're feeling Hurricane Harvey here.

Between the service disruptions in the gulf due to the storm, and the busy travel weekend, you can expect the prices to rise even more.

Analysts say average gasoline prices across Canada will continue to rise this weekend after jumping nearly eight cents per litre since hurricane Harvey roared ashore in Texas last Friday.

Atlantic Canada can also expect a jump of about 5-6 cents or more per litre, Fred Bergman, a senior policy analyst with the Atlantic Province Economic Council, told Global News earlier this week.

Consumers in Ontario are expected to be paying nine cents more per litre on Saturday, taking the average price in Toronto to $1.32 per litre.

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The closure of the Colonial Pipeline on Thursday, on top of major refineries including the largest, Motiva in Port Arthur, has led to exploding gas prices, McTeague said.

USA benchmark oil prices that fell below US$46 per barrel on Wednesday due to less demand from refineries have recovered to more than US$47 per barrel.

The online gas price monitoring site essencemontreal.com is showing the $1.35 price in several Montreal neighbourhoods, including Ahuntsic, Villeray, Saint-Henri, Saint-Léonard and downtown.

The Canadian average gasoline price has risen above $1.16 per litre, according to GasBuddy. He said this might help Calgarians anticipate the increases better and perhaps feel the effect a little less. "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.

Nova Scotia gasoline prices are set to go up again Friday at midnight, just 24 hours after the weekly gas price was established by the provincial regulator.



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