I know we're all really excited for the warm weather so we can drive around with our windows open and our hair blowing in the wind. But, that may not be financially smart for many Canadians this year.
The way gas prices are looking, it may be smarter to just start biking everywhere. Unless you want to drain your bank account, I'd start figuring out new ways to get around this Summer without a car.
Apparently, gas prices are going to be higher than they have ever been in the last ten years this summer. That's right, it won't have been this expensive in the last decade!
According to GasBuddy, this is happening because of how badly the Canadian dollar is doing and because of the rising of global oil prices. Usually, whenever oil prices increase, the Canadian dollar makes up for it by rising, but that's just not happening anymore, and we are going to pay the price for it.
The cost per barrel for oil is also having a huge impact on our gas prices. Apparently, the price per barrel is $16 higher than it was last year and could go up to more than $70 USD.
Yesterday, the average gas price for the country was $1.282 per liter, which is 17.4 cents higher than last year. I'm sure you've all been noticing that the gas prices are slowly but surely rising and rising. It doesn't seem like much week to week but soon enough you're going to realize just how much money you've been spending.
The biggest issue in all of this is that Alberta has been making threats to reduce their oil supplies in British Colombia and this could cause the gas prices to go up to as high as $2 a liter! That's absolutely insane!
Alberta and British Colombia seriously need to work out their differences when it comes to the oil trade because it could have really serious repercussions. The Trans-Mountain Pipeline and its expansions are causing a lot of conflicts, and we are paying the price.
The current Trans-Mountain Pipeline currently supplies all the oil to mainland British Colombia, so I can hardly imagine what would happen if the supply were to stop. Towns like Vancouver, Kamloops, and Kelowna would not have a good time.
Basically, if Alberta follows through with their threats of slowing oil shipments to BC, they could start paying ludicrous prices for gas. Recently, BC has already been paying record high prices of above $1.50 a liter.
The legislation in Alberta is going to be discussed next week. So, until then let's keep our fingers crossed. If this doesn't go well, it could have serious repercussions for the entire country, and not just when it comes to gas prices. It will likely also lead to a lower Canadian dollar which will make commodities other than oil more pricey for everyone in Canada.
Here are the current averages of what each province in Canada pays. And as I've been telling you, they're only going to go up.