Edmonton gas costs keep climbing despite glimmer of hope as oil prices dip


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The cheapest gas you can find in Edmonton is officially over $1.50 per liter.

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But it could be worse — in Victoria, the best you can hope for is filling a tank for just a couple cents short of $2 per liter, according to price-tracking website GasBuddy.com. Average prices in BC’s capital have blown past the $2 mark, and the Vancouver average is struggling to hold out at $1.99 per liter.

High oil prices and Russia’s invasion of Ukraine have sent gas prices soaring, and even though crude oil prices dipped this week, there isn’t a ceiling on price increases yet.

GasBuddy.com analyst Patrick de Haan said on Twitter Friday that there could be some relief over the coming days, with prices stabilizing or dropping slightly. But, he added, with such an unpredictable situation, “it could change quickly.”

Canadians for Affordable Energy president Dan McTeague warned not to get too excited, calling the oil-price pullback a short “head-shake.”

“Markets are marching right back up,” he said.

“(Oil markets) were following (Russian President Vladimir) Putin’s musings about maybe having a discussion, maybe an off-ramp to ending the hostilities that he’s committed in Ukraine.”

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McTeague argues that the stage was set for this issue well before conflict erupted in Europe.

“It’s very simple: You limit production of oil and the ability to get it to market, you have a shortage — and we have a shortage — and demand goes through the roof as we’re seeing … these things have consequences.”

Gasoline prices in Alberta are currently among the lowest across Canada, with the average sitting at $1.66 per liter in Edmonton and $1.68 per liter in Calgary, according to Natural Resources Canada. Costs are about the same in some parts of New Brunswick, but averages have exceeded $1.70 per liter across most of the rest of the country.

At Meals on Wheels Edmonton, a charity that delivers meals and groceries to people in need, fund development manager Tim Hanson said they’re watching fuel costs closely.

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The organization has four vans that deliver food and supplies to depots where volunteers pick up meals and deliver them using their personal vehicles. Meals on Wheels partners with Imperial Oil to pay the gasoline costs for the vans, but delivery volunteers apply for mileage reimbursements on a quarterly basis.

The charity hasn’t seen the first bill for 2022 yet, but with more than 4,600 clients — double the number compared to before the pandemic — there are concerns about how the costs will add up.

“It’s something we’re just having to keep an eye on here. Obviously, it’s just one more thing in the last couple years that might throw a wrench in stuff,” Hanson said.

Alberta gas tax relief still two weeks away

The provincial government has announced a gas tax holiday set to kick in April 1, adding up to 13 cents per liter.

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Asked Friday whether the province is considering more relief programs, Energy Minister Sonya Savage didn’t offer specifics.

“We’ll make sure that it continues to be affordable. We’ll continue to look at those types of things to determine how to get through this energy crisis in the short term and other measures in the longer term,” said Savage, who pointed to the federal carbon tax for contributing to the high price of gas at the pumps.

The increase in the carbon tax this year is expected to cost Albertans an additional 2.2 cents per litre.

At an unrelated news conference, NDP energy critic Kathleen Ganley reiterated Friday the NDP’s calls for the government to bring in a better natural gas rebate that applies to current high prices, and consider a more meaningful rebate or cap on electricity prices.

“It’s all very well for them to say that they’re thinking about it and they’re talking about it and they’d like to do something about it one day, but that just fails Albertans who are struggling right now,” said Ganley .

“It’s not just one cost that is slamming Alberta families — it’s a bunch of costs together,” Ganley said, pointing to a basket of rising costs including post-secondary tuition.

—With files from Lisa Johnson

[email protected]

Twitter: @meksmith

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