Alberta could see record gas prices this summer – Red Deer Advocate
After hitting gasoline low just over 12 months ago, Albertans are in a hurry to the pump as summer approaches.
The average price in Red Deer is around 1.29 / L and if current trends continue it could easily break the highs of nearly 1.35 / L that were set in 2018.
“Without a doubt, very expensive. Provincially, Alberta is at 1.30 per liter at about five cents having hit all-time highs in Alberta. A sort of dubious distinction, ”said Patrick De Haan, head of Petroleum Analysis for GasBuddy.com.
“A large part of this is due to the increase in the carbon tax in most of Canada. Beyond that, the reason for the large increase compared to even at the start of the year and a year ago is linked to certain imbalances created by Covid. “
Alberta has occasionally flirted with prices slightly above 1.31 / L, but only once in the past 10 years has the monthly average been above 1.31 / L, when it was 1.0. 32 in July 2008.
This is in stark contrast to last summer, when gasoline prices in Alberta hit a decade-long low, when prices were between 67 and 76 cents per liter.
“At the onset of the pandemic, Canadians parked their cars for several weeks as we kind of tried to get out of this pandemic. As a result, the demand for crude oil and gasoline fell. This prompted oil producers to drastically downsize their operations and start laying off workers and closing wells, ”De Haan said.
“Now that we’re on the flip side and things are looking up, we end up with this imbalance – global demand is close to or is likely to exceed global supply.”
Prices at the pump today largely reflect this according to De Haan, who said Albertans shouldn’t expect relief in the summer months and probably not until 2022, when the supply will catch up with demand.
“The prognosis is not great. Much of this is because demand continues to pick up. I wouldn’t expect much price relief until potentially later this winter and for now there won’t be much of a drop, ”he said.
“We’re going up slowly and this could continue until July or August when we see peak demand. It’s not impossible that we could see all-time highs or close to 1.40 per liter before things start to fade.
Most gas prices in Red Deer as of Saturday were between 124.1 / L and 130 / L.