Gas prices soar in Calgary, average eclipses $1.50 per litre mark

Calgarians should brace for some sticker shock at the pumps as the average fuel price in the city jumped to around $1.52 per litre Thursday morning

Some gas stations were selling regular grade gas for nearly $1.58 per litre, a drastic jump compared to this time last year when the average gas price was around $1.17 per litre.

To make matters worse for drivers, most analysts aren't expecting to see these prices taper off any time soon.

"Everywhere you look, there really isn't must relief," said Ontario-based gas analyst Dan McTeague. "Prices are heading north in a rather substantial way.

"If that (wasn't) enough, diesel prices are going even higher and rising much more rapidly."

The main factor contributing to these sky-high prices is the ongoing Russian invasion of Ukraine, which is affecting a gas market that has already seen high demand for weeks.

Now, the situation in Ukraine is inflating concerns about a further shortage of oil supply.

"We’re emerging from COVID with a likely pent-up demand that is going to aggravate that situation," McTeague explained. "Then along comes Vladimir Putin using the vulnerability of Europe and the fact that they require his oil and gas. Energy prices have now become the global concern and they're very much at the beginning of global security.

"The longer this goes on — that we don’t address the fundamental shortage of gasoline — the longer and more likely we'll see prices move higher than would be economically tolerable."

TAX TROUBLES

Canadian drivers can expect another price bump in April when federal carbon pricing is slated to go up.

Alberta Premier Jason Kenney has been an outspoken critic of the levy. 

"Scrap the carbon tax," he said to CTV News Thursday. "Stop making the situation even worse. This is ridiculous."

Kenney could rearrange the provincial gas tax, or offer a rebate similar to the one his government is planning with natural gas in October. But when asked about a potential local reprieve, the premier once again pointed to Ottawa. 

"If Justin Trudeau were to agree to not raise the gas tax -- the federal gas tax -- on April 1, then we would look for sure at further relief here in Alberta," he said. 

Ottawa says it will ask the competition bureau to keep an eye on prices at the pumps, but there are no plans right now to delay the carbon pricing increase.

With files from CTV News Toronto