Canadian Press file photo

By Sheldon Spackman

CARBON TAX INCREASE TAKES EFFECT

Gas prices to remain high as pandemic continues: GasBuddy

Apr 1, 2021 | 3:29 PM

Alberta drivers can expect to see gas prices at the pumps continue to be tied to the COVID-19 pandemic until things return to “normal” again.

Patrick De Haan, Head of Petroleum Analysis with GasBuddy.com, says fewer COVID cases means more demand and higher prices, while higher case counts can decrease demand and result in lower gas prices.

“Much of how high prices go this year will be contingent on COVID recovery, and oil production levels,” says De Haan.

“If oil producers can’t keep up with the rebound in demand, Canada could get close to setting record high prices. Overall, global demand for oil continues to strengthen, pushing gas prices higher, though in the last two weeks, oil prices have faded slightly due to an alarming rise in COVID in Europe.”

Looking ahead, De Haan expects some stability in prices but that by mid to late April there could be more price increases.

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“But like I said, it’s completely unpredictable because it’s tied to the pandemic improving,” adds De Haan.

Another factor impacting gas prices is the April 1 increase in the federal carbon tax.

Officials with the Canadian Taxpayers Federation (CTF) say the increase to $40/tonne will cost a family about $7 every time they fill up their minivan with gasoline.

De Haan admits the tax will cost every one across Canada, albeit some areas slightly more than others.

“But carbon taxes are a direct tax on the end-user, whether it be gasoline, diesel or heating oil,” shares De Haan. “The rebates make the carbon tax less ugly up front, but I wouldn’t be surprised if and when the federal government starts reducing those, if the carbon taxes don’t stifle demand.”

According to GasBuddy.com, the lowest gas price in Grande Prairie as of April 1 is currently $1.13 per litre.

(rdnewsNOW)