(Photo by Jenn Durfey via Flickr)

Gas Prices Expected To Soar In The New Year

Drivers are likely to take a hit to their pocketbooks in 2018.

Dan McTeague, senior petroleum analyst for GasBuddy.com, says gas prices will continue to rise throughout the year.

“With demand and supply of oil being as tight as it’s going to be in 2018, look for prices to head up anywhere from three to five cents a litre on average here in Ontario — more specifically here in Southwestern Ontario,” he says.

McTeague says there are a few factors that come into play that explain why the cost of gasoline is going up. Some of those factors revolve around the Canadian dollar, demand in the United States, oil stocks or gasoline inventories, and frigid temperatures.

He adds that another factor in high gas prices comes from refineries a little closer to home.

“Two of the refineries there [in Sarnia] Shell and Suncor, have both had some trouble with output and so that too is having an affect,” he says. “The wholesale price is about four cents higher than I’ve seen it for this time of year because of disruptions at the two refineries.”

Throughout 2018, McTeague says prices will fluctuate slightly but gas will be costly for the most part.

“What happens is retailers get about 10 to 12 cents a litre, which is their margin to cover the cost of running and operating a gas station,” he says. “We’re going to continue to see these kinds of wild fluctuations, all the while the wholesale price of gasoline will continue to rise throughout much of the year. Expect 2018 to be a lot more expensive — not just for gasoline but for diesel fuel as well.”

McTeague says January is typically a month of lower demand. However, prices have already started to increse in the area.

You can track gas prices provided by Gas Buddy for London, Chatham, and Windsor through links found on our website.