Fuel prices in Kamloops on May 6, 2022. (Image Credit: Chad Klassen / CFJC Today)

By Dylana Kneeshaw

GAS PRICES RISING

Swell in fuel prices across B.C. and Kamloops could last for weeks

May 6, 2022 | 4:15 PM

KAMLOOPS — It’s getting even more expensive to fill up your vehicle’s gas tank this week. Prices in B.C. and Kamloops are climbing again, with potential for inflated prices to remain high for several weeks.

According to Vijay Muralidharan, a senior consultant with Kalibrate Canada, the rise in fuel cost is the result of a number of factors. Demand is high, and the war in Ukraine has led to American sanctions on Russian oil — with Europe considering similar action.

“Now if Europe does it — that will have a big bearing because they’ve got to go to alternative sources — meaning Canada and the U.S for these products,” he explains.. “Now, we have low stock levels. If some new demand comes into our doorstep, we’re going to have to pay a higher price. Because whoever pays the higher price wins the product.”

Prices are going to be high over the next several weeks, but analysts expect that once we get past June — prices could pull back. Provided the Ukraine-Russia conflict doesn’t escalate further.

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“The crude portion on the gasoline which is about 78 cents to about 98 cents — you’re going to look at about a 25 cent swing up or down. Unfortunately that’s the case,” says Muralidharan. “This is what we think will likely happen. It depends on crude price fluctuations.”

However, if the high prices are sustained for two months or more, Muralidharan says people are likely to change their consumption habits. Which could decrease demand and result in slightly lower prices.