Gas prices jumped in Atlantic Canada roughly four cents a litre in Nova Scotia, New Brunswick and Newfoundland and Labrador, while Prince Edward Island saw a price increase of 6.9 cents per litre on Friday morning.
“It’s not good but I’m going to buy it no matter what,” one gas customer told CTV News.
“I’m angry you know, just disappointed,” added another customer.
According to gas analyst Patrick De Haan, fuel prices in general are on the rise in Canada, more so in some areas compared to others.
“It is for everyone except Manitoba and Alberta, who saw prices rise the week before and every other province in Canada is also up,” said De Haan, who also explained why there has been a more dramatic increase in Atlantic Canada.
“The refineries are in active turnaround season and refineries in some areas have less capacity than others. Meaning, when refinery maintenance happens in one area, that refinery may supply more gasoline to a certain community.”
De Haan called it short-term pain with fuel savings on the horizon, because the consumer carbon tax on fuel is gone.
“The carbon pause amounts to 17.61 cents per litre,” said De Haan. “I would expect at least a 15 cent per litre drop pretty quickly after April 1.”
During the ongoing Canada-U.S. trade war, travel experts are also anticipating a slowdown in tourism from Canada to the U.S. That means, more Canadians could spend their vacation money in Canada, driving throughout the country and not flying.
“Maybe people will not be going to far-flung international destinations, and maybe not going all the way across Canada,” said Dalhousie University professor Lorn Sheehan who specializes in tourism and destination management. “People may take a shorter regional trip.”
In that tourism environment, Sheehan believes fuel prices would be critical as many Canadians measure their spending capacity based on gas prices, especially at a time when prices are volatile some parts of the country.
