An expert in the petroleum industry says more pain at the gas pumps is on the horizon as vaccine rollouts ramp up.
George Murphy, of Consumers for Fair Gas Prices, says as people get their COVID-19 vaccine they are making travel plans and the industry sees an opportunity.
He adds after a year of restrictions and isolation, people aren’t going to hesitate to pay the price to get out.
“We’re talking about increased demand because people are going to be moving a lot more as they get their vaccine,” explained Murphy in an interview with our newsroom. “I don’t think fuel prices are going to hinder people in the least when it comes to travel and in saying that…the price is going to go up.”
Murphy says he was a bit surprised went up 6.1 cents in one shot last week to smash the $1.30 barrier in Nova Scotia. He had predicted an increased of three to four cents per litre.
“There are many factors are play. We’re seeing refinery disruptions, we’re seeing heavy demand and market speculation with the vaccine rollout and speculators are playing with the numbers and betting on heavier demand in the summer as well.”
Diesel prices went up as well, and now are sitting at $1.20 in many community in Nova Scotia.
He says given the large increase was coming at the same time of the weekly setting, it wasn’t a situation where the Nova Scotia Utility and Review Board would use its interrupter clause.
It’s a mechanism the board uses when there are steep increases or declines in the market greater or less than six cents.
