The price of filling up gas tanks in Canada is slowly becoming an irritation that all Canadians can quite shake off. And studies have found that this problem is bound to become more of a menace in the coming future. A very bad sign for the gas industry in Canada. This article highlights five reasons that show gas prices soaring up now and will keep rising.
- Summer
One common factor and trend that you must know by now is that gas prices always tend to rise a lot during the summer periods. Dan McTeague of GasBuddy.com has found a study that the gasoline demands usually spike around the second week of June.
One main cause why this usually occurs is that the chemical composition of the gas is usually different in the summer periods than in the winter periods. These chemical composition changes occur due to the different weather conditions, and it also forces refineries to adjust to these changes and calibrate their systems accordingly to handle the different weather makeups and gasoline compositions as well.
You will also notice that the summer period ranks among the most popular seasons for driving, which in turn also leads to the increased demand for the already limited gas at the time. Thus, the significant hike in gas prices.
- Blame the U.S.
Contrary to what most consumers may believe, Canada doesn’t produce and even refine much of the gas that the country consumes. This alone makes the prices to be high already owing to the dependent of U.S. refiners. And right now, you find that the overall gas prices are rising about everywhere throughout the world which makes the prices in Canada be even much higher than the usual.
- Pipeline problems
As of now, you will notice that there is no bigger pipeline problem currently as the one of British Columbia and Alberta. With British Columbia B.C. moving between 60,000 and 80,000 barrels of gasoline, jet fuel, and gasoline, calculations show that this relates to between 60% and 75% of all the fuel used in British Columbia, explains McTeague.
This pipeline fight between these two countries also has the potential of raising the gas prices in Canada as well.
- Rail strike
Whenever pipelines get shut, you will often find that most oil gets diverted to rail systems to haul. But the Canadian rail systems also have their issues to take care of at the moment. During the fall and winter periods, you would have noticed all the major rail companies warning about the network bottlenecks.
- Loonie
And all this comes right atop the issue with the Canadian dollar. You must have known this by now; that all oil products are priced at American dollars, and this year alone, the Canadian dollar has seen some worse performances against the American dollar overall which also equates to more money used to purchase these oil products in general. This is not good news for any of the gas buyers in Canada, but it is something that everybody still has to live with since gas may be the single most valuable aspect of our daily routines.
