Gas prices in B.C. drop after weeks-long spike, but experts warn of future increases
Tight market for refining capacity could lead to more gas price volatility in the future, says UBC prof
B.C. can expect a significant decline in gas prices over the next few days, giving residents a reprieve from historic highs over the last several weeks.
The price at the pump on the South Coast fell to around $1.92 per litre of regular on Thursday — a significant drop from the recent high of around $2.40.
Gas Wizard, an online price tracker and forecaster, has predicted the price could dip below $1.90 on Friday.
Prices at the pump have been hitting stratospheric heights across much of B.C. since late September. Experts attributed the jump to the fact that several refineries in North America went offline or ran into problems at the same time.
Refineries in Edmonton and Washington state were both down for maintenance, as is customary in September, but there were also issues with refineries in California and Ohio.
Werner Antweiler, an economics professor with UBC's Sauder School of Business, said the astronomical highs this past few weeks were not expected to last.
"It was clear it's going to be remedied as soon as the capacity for refineries came back online," he said.
Still, Antweiler said British Columbians can expect more erratic price patterns because there is currently a tight market for refining capacity.
"We will see more price volatility in the future because of these situations that can happen again, and they probably will happen again," he said.
He added the international oil markets also pose a threat to future gas prices.
"We will see volatility accruing from different sources," he said. "Motorists will have to be all prepared for prices to go up and down quickly both because of international factors but also when we have issues with the local refining capacity."
Experts have said sky-high prices and global warming can help motivate the switch from fossil fuel burners to electric or zero-emission vehicles, supply issues notwithstanding.
In the spring, provincial Energy Minister Bruce Ralston said B.C. is not considering a cap on gas prices.
The B.C. NDP has maintained that stance since 2019 after a government report concluded regulating gas prices provides "some price stability" but does not lead to "lower prices for consumers" overall
With files from Karin Larsen and Joel Ballard