Prowling the Pumps – September 16, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada rose 7.7¢ this week. Our hypothetical 80-litre tank was $6.16 more expensive to fill this week than last. Gasoline prices rose everywhere except in the Yukon.

Here’s the situation. Hurricane Ike gained strength as it tracked across the Gulf of Mexico, but never reached higher than Category 2. However, its immense size and the storm surge it pushed caused oil companies to shut down production platforms in the Gulf and refineries along the Gulf Coast. This action seemed to prompt a significant increase in the price of gasoline all across North America. However, platforms and refineries were largely undamaged, and restart operations began soon after the storm passed.

Least Expensive Gasoline in Canada (per litre)

For the first time since June 24, Kingston is not the least expensive city in which to buy gas. In fact, for the first time since we began prowling the pumps, Kingston doesn’t even make it into the low-cost five. Ottawa now has the distinction of being the city with the cheapest gas. Must be the election.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Whitehorse out, Victoria in and a bit of jockeying around for the other four.

A lot of things influencing the price oil last week – Hurricane Ike, American investment bank meltdowns, continued rebel attacks on oil facilities in Nigeria – but the main stimulus seems to be a potential world-wide recession. Consequently, the WTI oil price slid to $91.42 US per barrel on September 16, its lowest since early February 2008. Gasoline, on the other hand, seem to be headed in the opposite direction…or is it?.

As ever, we’ll see what happens next week.