High gas prices not sustainable says Dan McTeague
Price watcher and former MP says he expects drop in demand to lower prices by summer
Gas prices have climbed to a two-year high this week across the country, but at least one analyst says those prices are not sustainable and that prices should drop by this summer.
The national average regular gasoline price was 136.8 cents a litre this week, about 10 cents a litre higher than this time last year, but very near the price of two years ago.
Prices for other automotive fuels, such as diesel, were also up close to 10 cents a litre from this time last year.
Analysts such as Bank of Montreal chief economist Doug Porter have blamed the price increase on the rising price of crude oil, as well as the falling Canadian dollar.
Dan McTeague, a former Liberal MP and founder of price-tracking and forecasting website TomorrowsGasPriceToday.com, said oil refiners and retailers have driven up prices to take advantage of the Easter long weekend, when many people take to the road for long trips for the first time this year.
He said the current prices are being artificially raised by refiners limiting the supply and said in the long run they are unsustainable.
"I think this is the high-water mark, this is going to damage demand and I think refiners are going to find themselves with a lot of gasoline no one wants and you are going to see prices drop," said McTeague.
In 2012 gas prices followed a similar narrative. Prices rose to a high of 136.7 cents a litre on April 17 before dropping to to 123.1 cents a litre by Canada Day.