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November 01, 2017 - 11:44 AM
KAMLOOPS - A 10-cent a litre spike in gasoline prices in Kamloops could just be the start.
Senior Petroleum analyst with GasBuddy, Dan McTeague, says the overnight increase in gas prices is largely due to the wholesale price of gas rising.
According to the GasBuddy website this morning, Nov. 1, prices in Kamloops range between $1.23.9 and $1.25.9 per litre for regular gasoline.
"It could go even higher than that," McTeague says.
Gas station owners in Kamloops are currently paying about $1.21 per litre right now, which means they're raising gas prices to make a profit, he says, and predicts gas prices in the city could go up to about $1.33.9 by the end of the week.
"Kamloops is a pretty aggressive market so $1.33 or $1.34 could be the price you pay as early as Friday," he says.
The prices are being driven by the Chicago spot market for gasoline, McTeague says, which is home for all U.S. gas prices in the midwest states. Information from The Gas Game shows the Chicago spot market spiked on Oct. 30 and continued to rise on Oct. 31.
McTeague says wholesale prices for gas prices are about 11.5 cents more expensive this week compared to last week, and they could go up another three cents.
One of Explorer Pipeline's systems in the U.S. is running at a reduced rate so that is having an impact on supply. Plus U.S. demand for gas is up, which is having an impact on our prices as well, he says.
"Demand continues to rise and unfortunately we’re paying the freight for it here in Canada," he says.
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News from © iNFOnews, 2017