Fill up now: Big gas increase a matter of when, not if, says analyst

It appears New Brunswickers are in store for a major jump in gas prices perhaps by nine cents alitre by midnight tonight.

Dan McTeague, senior petroleum analyst with the price-comparing website GasBuddy.com, says it's a matter of when, not if.

"If you're driving with 75 litres and you're going to be travelling this weekend, the increase could be at least $7 or $8" extra to fill up,he said.

"That's money in your pocket."

New York market dictates

Retail prices in New Brunswick are largely based on what the stock market in New York says.

If the price on any given day increases more than six Canadian cents per litre, the New Brunswick Energy and Utilities Board activates its interrupter clause, which allows the board to increase the maximum price gas can be sold for.

It's designed to protect the investment of gas retailers and ensure they don't haveto sell their gas for less than what they bought it for.

Compared to Thursday, the commodity price has already jumped more than six cents a litre in New York, meaning the increase in New Brunswick is likely to happen tonight.

"Gasoline in NB (but not diesel or heating oil) likely to jump as much as 9 cents tonight at midnight in special Harvey price setting," CBC's resident Gas Guru Robert Jones tweeted this morning.

"Large increases in New York spot prices yesterday. Prices to wholesalers in SJ and Halifax, which mirror New York, up 8 cents this a.m."

It's likely we will see another 14-cent increase between now and next Thursday.- Dan McTeague, on Friday morning

McTeague said how much the price actually jumped up works out to be closer to nine cents, but the message is the same.

"I would definitely ... buy some gasoline," he said. "Wholesalers and producers will have to pay immediately and those prices have to be reflected as soon as possible."

This recent soar in gas prices is caused by the devastation to the Gulf Coast caused by Hurricane Harvey, which interrupted supplies to the East Coast.

"It's likely we will see another 14-cent increase between now and next Thursday," McTeague said Friday morning.

Gas prices are on the rise

7 years ago

Duration 1:17

Gas prices are on the rise

Drivers reaction

Some drivers in Saint John were resigned to a pending increase,but not happily.

Ciara Hogan called the increase a bit ridiculous but said there wasn't much a person could do about it.

"People out there have it much worse," Hogan said, referring to Hurricane Harvey victims in Texas.

Others, like Christine Prosser, wondered why gas prices in this province would be affected by events in Texas.

"I think it's just another grab from us people that have to drive."

Larry MacFarlanehad similar thoughts.

"I feel sorry for them, but I don'tfeel we should be paying for it with our gas."

George Cole said theCanadian gas market may betied to the United States, but this was no reason for apossible nine-cent price hike.

"We have a refinery sitting right here in our own city, and we're affected by the world market, which I think is just scandalous. It's gouging, that's all it is."

While Rolf Spangenberg said it's not good to see such a price hike, but he understood why it was happening.

"Volume dictates market price, and the fact that volume is not going to be available anymore is going to cost us."