Gas price spike in Drayton Valley expected to last for weeks

By Laine Mitchell (Twitter: @Laine_Mitchell)
November 1, 2017 - 10:41am Updated: November 1, 2017 - 12:15pm

Motorists in Drayton Valley as well as across the province might be doing a double take at the pumps as gas prices are expected to rise throughout the rest of the week. 

Drivers should expect prices to rise and settle at 114.9 to 119.9 cents per litre according to Senior Petroleum Analyst for GasBuddy Daniel McTeague. 

McTeague says the jump at the pump is the result of a disruption in a major pipeline known as the Explorer Pipeline as well as some refineries in the U.S. Midwest not coming out of maintenance as quickly as expected. That has caused a crunch in supply bringing with it a rapid and dramatic increase at the pump. 

The price hike could happen as soon as this afternoon and will continue into the weekend. 

McTeague says Drayton Valley’s gas prices will be higher than gas stations in cities such as Edmonton or Calgary mainly due to having to compete with big box stores in urban areas.

“Retailers in smaller communities tend to have to make sure they cover their costs. Drayton Valley prices have a lot more to do with cutthroat competition with places like Edmonton.” 

He adds motorists should treasure the memory of prices sitting below a dollar a litre, with that likely becoming less of a possibility in the future. 

“In an environment where oil remains above $50 to $55 a barrel and the provincial carbon tax adding an extra 2.5-2.7 cents a litre come January 1, rural gas prices will be well above a dollar per litre and may settle as high as 120.0.” 

He believes the disruption causing the uptick in prices should resolve itself in the next two weeks, but it certainly won’t bring back the kind of prices Albertan’s have become accustomed to over the past few years.

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