Canadians have been able to rejoice in the low gas prices that have blessed the nation this month but you shouldn’t be getting used to these lower than normal costs that we have seen lately. GasBuddy has just released their 2019 gas price forecast and is stating that gas prices are set to dramatically rise this upcoming year.
Gas prices throughout Canada are expected to reach higher than usual prices mainly in the upcoming spring and summer months. Prices are even expected to reach an all-time high since 2014 - so, you better start saving up now!
One of the main reasons for this seasonal spike is due to Ottawa imposing the Carbon tax on April 1, which will raise the price by an average of 5 cents per liter. This tax is expected to make your gas a bill a whole lot higher throughout 2019 when it becomes implemented in the spring.
With the normal rise in summer gas prices, along with carbon taxes, the weakening of the Canadian loonie is also another factor that will cause gas prices to rise. The loonie, which is now 10 cents weaker than the U.S dollar, is predicted to continue to weaken throughout the year of 2019, which will help dramatically affect gas prices.
The gas price increase will be noticeable throughout all of Canada but is predicted to be even worse in Vancouver, as it will become the “highest taxes jurisdiction on fuel in North America”, replacing Montreal who held that title throughout 2018.
Dan McTeague, senior petroleum analysist with GasBuddy, reached out about the issue, stating, “With carbon taxes set to begin or increase in 8 of 10 provinces, the average hike of 5 cents per litre by April 1, combined with a limping loonie, will almost certainly force up the cost of filling your tank, just in time for the summer driving season and switch over to a more expensive gasoline,”.
We've definitely seen the rise and fall of gas prices in 2018, and 2019 is set to be no different, with a variety of high and lows throughout the year.
Yet, with 2019 being predicted to be the highest year of gas prices since 2014, Canadians better enjoy the lower prices of gas while it lasts, as this year is going to be a roller coaster of ever-changing gas prices. Especially in these upcoming summer months.