The national average for gasoline climbed to $1.19 Friday, with prices continuing to edge higher in Toronto, Halifax, Vancouver and Montreal.
In Toronto, the average price of gas climbed to $1.14 while gas stations in Halifax averaged $1.22 per litre. Motorists in Vancouver and Montreal paid $1.24 and $1.27 respectively, according to gasbuddy.com.
Gas prices are expected to climb as high as $1.50 per litre this summer.Gas prices are expected to climb as high as $1.50 per litre this summer.
"We're starting to see pump prices creep up because of strong demand outside of North American but also here at home," said BMO Nesbitt Burns analyst Randy Ollenberger.
Ollenberger said geopolitical uncertainty in oil-rich regions including Iraq and Nigeria contribute to price hikes as well as a lack of refinery resources.
"No one's built a new refinery in Canada for 20 years and no one's built a new refinery in the U.S. in over 30 years," he said. "No one seems to want them and the costs really haven't justified the investment."
According to Calgary-based MJ Ervin & Associate's weekly pump price released Tuesday the national average reached $1.16.
Leading into the summer driving season, Ollenberger said prices will jump over the summer driving season.
"I think we'll easily see prices at [$1.50]," he said. "I don't think prices are going to start backing down anytime soon."
Meanwhile in the U.S., retail gasoline prices hovered at $3.365 US per gallon while diesel prices increased to $4.066 US.
Light, sweet crude for May delivery dropped 73 cents to $109.38 US a barrel on Friday. [
link to www.cbc.ca]
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