Gas prices jump by up to 13 cents per litre in some markets
Last Updated: Friday, September 12, 2008 | 5:20 PM ET
CBC News
Motorists in many cities in Canada received a sharp surprise early Friday when they discovered the price of gasoline had risen by as much as 13 cents per litre.
Liberal MP Dan McTeague, a critic of the oil industry, said he cannot recall a time when gasoline prices rose by so much in such a short period of time.
McTeague said "there is no justification" for Friday's increase. He said the four main Canadian oil companies are taking advantage of motorists.
The price on Friday for regular gasoline across most of southern Ontario, for example, is about $1.36 per litre. In Ottawa, the price is about $1.32 per litre.
In Winnipeg, pump prices jumped to as much as $1.47 per litre at some stations Friday morning, up from $1.35 the previous day.
In Calgary, motorists reported gas prices varying from a low of $1.19 to a high of $1.42.
Hurricane Ike blamed for hike
Other energy experts blamed the steep rise on Hurricane Ike, which is headed for Texas and expected to make landfall either late Friday or early Saturday.
Many refineries along the Gulf Coast, representing roughly one-fifth of American refining capacity, were already closed ahead of the storm's landfall.
"According to estimates made by the Minerals Management Service, about 97 per cent of crude production and more than 93 per cent of gas output in the U.S. part of the Gulf of Mexico were idle in preparation for the storm," wrote analysts from JBC Energy in Vienna.
"In addition, some 11 refineries, which represent more than 16 per cent of total U.S. refining capacity, have shut down operations."
Ike, along with last week's hurricane Gustav, have helped keep oil prices from falling faster, as concerns over a slowdown in global economic growth have pushed prices down.
Long lineup at gas bars
Long lines formed at gas stations after news leaked of the impending jump in price.
At the Pioneer gas bar on Winnipeg's Main Street, where gas was selling for $1.40 a litre, Stan Rowbotham said the lineup was 20 vehicles deep Friday morning.
"I opened at 7 a.m., and 7:15 hit, the lineups just started non-stop," he said. "I was here by myself. People were pumping their own, even though this is a full-service station. And it was just nuts, I couldn't move."
Down the street at a Shell station where the posted price was still $1.28, Neil Cameron shook his head as he waited his turn for a fill.
"The same gas that was in the tanks last night selling for $1.28 is now $1.47 in some places," he said. "It's pretty easy to figure out somebody is gouging somewhere."
Ivan Banias, another motorist in line, finds the Hurricane Ike explanation hard to swallow.
"I kind of don't believe that, because I'm paying for gas that is already in the tank," he said. "Hurricane Ike isn't affecting anything that's inside this tank right now. This gas has been paid for."
In the U.S., wholesale gas prices jumped on Thursday after reports that Hurricane Ike could threaten oil refineries in Texas near the Gulf Coast.
With files from the Canadian Press and the Associated Press
