Expert predicts no relief at the gas pumps
Posted Nov 8, 2011 12:39 pm.
This article is more than 5 years old.
A Canadian energy analyst sees much higher gas prices in the coming months.
“Everything is just falling off the end of the table,” says Roger McKnight of En-Pro International who notes that rising world oil prices and reduced refining capacity are pushing up the cost of fuel across North America. “I can not see prices dropping drastically between now and the end of the year.”
“The inventories are dropping drastically for gasoline in the United States,” McKnight elaborates. (The) “refining level is dropping drastically as well. So you’re going to see some huge, huge prices in the spring.”
McKnight says making matters worse, three of this country’s 15 refineries are not firing on all cylinders at the moment.
“You got three that are having problems,” he says. “You’ve got one in Regina, Federated Co-op. You have a problem with the Shell refinery in Scotford. And you have a problem with the Petro-Canada refinery in Edmonton as well.”
McKnight says next year’s elections south of the border are not helping matters either.
McKnight predicts pump prices in Western Canada will hit $1.20 a litre in early 2012.
The average price of gas in Calgary right now is about $1.07 a litre, 14 cents below the national average.
