Need a new staycation motivation? Record high prices at the pump

CALGARY -

Maybe that staycation everyone took in the summer of 2020 was so good, it's time for a summer sequel.

That's because one of the conversations around the backyard grill is sure to be the fact that Calgary is setting a new record for the price of gasoline at many stations around the city.

The previous record was in July of 2018 when gas topped out at just over $1.38.

Friday, Calgary drivers enjoyed gas prices advertised for more than $1.41.

Dan McTeague, who heads Canadians for Affordable Energy and keeps a close watch on the price of gas across the country, had no good news for motorists Friday.

"We're looking at some pretty heavy prices," said McTeague. "If you think now is bad let this be a warning to what we're going to be paying going forward."

TERMINAL ISSUE

He said the latest increase is partly due to an Imperial Oil terminal issue effecting prices on gasoline and diesel.

"Looks like it was a short-term problem that may be resolved by this time next week," said McTeague. "In the meantime it's set prices skyrocketing really  across much of the province  - not everywhere, but we're now seeing record prices for much of Alberta."

Josef Schacter is the president of Energy Research Services and based out of Calgary. He pointed to the surging prices of West Texas Intermediate which closed Friday around at around $72 a barrel as another culprit.

"If you remember we were $20 dollar oil in March of 2020," said Schacter. "And prices were below a buck, I think we were in the 80 cent range per litre."

He said adding to the cost increase now are higher provincial and federal taxes for consumers.

"I think we're probably going to see the price of crude back off after the summer driving season," said Schacter. "Potentially into the 60s and that could give us a little respite maybe 10 or 15 cents so from a $1.30, $1.40 depending on where you're shopping, you might see $1.20 numbers again."

McTeague said producers were caught off-guard by the summer demand and are trying to catch production up with the need in North America.

"We've spent a few years blocking pipelines in this country, we spent a few years navel gazing over oil," said McTeague. "Well now this is going to become a very heavy price that all of us are going to have to bear."

He says there will likely be a trickle down effect where consumers will see higher costs on items that are trucked to southern Alberta retailers because drivers have to pay more in fuel costs to get it here.