Another jump at the pumps
Posted Apr 28, 2011 5:59 pm.
This article is more than 5 years old.
Drivers in Calgary are dealing with paying an extra 2 to 3 cents a litre for gas.
Several stations all over the city are selling fuel for nearly $1.24 a litre.
Petroleum analyst Roger McKnight says the spike of prices across Canada is because market speculators were already driving up oil prices on Libyan unrest, and now the U.S. Federal Reserve has made the situation worse by not raising American interest rates.
“That lowers the value of the U.S. dollar and increases the price of crude,” he says. “So until such time as the Federal Reserve gives its head a shake and increases interest rates to cut back on inflation, the price of crude is going to keep going up.”
But he says Canadian customers do have one thing to be happy about.
“God bless the Canadian dollar, otherwise we’d be in real trouble. The Canadian dollar acts as a huge buffer,” he says. “Otherwise gas prices could be 15 per cent higher than they are right now.”
He adds that it could always be worse. Montreal saw a ten cent per litre overnight price jump just this week.
