Gas prices in Calgary set to go up ... and up, and up

Gas prices jumped in Calgary this week, and they are going to keep going higher, according to a senior petroleum analyst at Gasbuddy.com

Prices at the pump are hovering at around 103.9 cents per litre at many stations, and they will be up to 108 cents per litre between now and Monday or Tuesday of next week, says Dan McTeague.

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Shutdowns at two key refineries Exxon's Joliet refinery in Illinois and BP's Whiting refinery in Indiana are to blame for this week's spike in prices, he says.

"If I'm a gas station owner today in Calgary, it's costing me almost 96 cents a litre to buy my fuel. So $1.03, which I'm seeing at many gas stations, is about a seven or eight cent margin," he said.

"Out of that you have to remove two or three cents for honouring credit cards, which most of us use to buy gasoline."

McTeague says motorists in Alberta will have to get used to paying quite a bit more at the pumps.

Starting Jan. 1, the new provincial carbon tax will add an extra 4.49 cents per litre.

In 2018, gas prices will go up another 2.24 cents per litre as the carbon levy increases to $30 per tonne from $20 per tonne.

OPEC's lower production quotas, a weakened Canadian dollar and new sulphur regulations for refineries will also put upward pressure on gasoline prices in the near future, McTeague says.

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