Gas prices jump overnight in some Canadian markets, led by BC, Quebec

The Vayu report noted that the wholesale gas prices were now back at levels not seen since last February. Thinkstock

With the long weekend coming up, they can't afford to not be making money.

"We are nowhere out of the woods yet and this problem will not be resolved [in September]", Dan McTeague, senior Canadian petroleum analyst with GasBuddy, told Global News.

The lowest prices have been reported at much smaller communities such as Hagersville and Deseronto, hovering around 103.9 cents.

The result has been an instant five-cent rise in gas prices in Toronto, for example - and McTeague is predicting a further jump of nine cents on Saturday.

By the end of day, that's exactly what happened, at least in Sudbury, with prices reaching $1.28.9 litre at many stations in the city.

"It's crisis 101 - 31 per cent of all USA gas production is now idle", he said. Price of regular gas: 123.9 cents per litre.

In Western Canada, prices also leapt based on oil trading in Chicago, said Mr. McTeague.

In September of 2008 prices spiked basically overnight compared to the nearly incremental increase Calgary is seeing now, explained McTeague. "Sort of a cascading effect from Texas going north".

"Until we get engineers into the refineries to assess the damage it's all speculation", he said.

Roger McKnight, senior petroleum analyst with En-Pro International Inc., said he has never seen such a big price increase. "And with that they'll be able to feed product into the Colonial Pipeline and restore inventories in the northeastern USA", said Michael Ervin, senior vice-president with Kent Group Ltd.

"Some of the refineries in Canada are going through fall maintenance, and that means we just don't have any capacity". That's likely to keep prices high and lead to another spike several months from now as working refineries eventually have to go into maintenance, he said.



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