Gas prices jump almost 3 cents at N.L. pumps

Motorists in Newfoundland and Labrador woke up to a hike in gasoline prices on Thursday.

The Petroleum Pricing Office raised prices for all types of gasoline by 2.7 or 2.8 cents per litre, depending on rounding for sales tax.

That brings the maximum price for a litre of unleaded self-serve gasoline at pumps on the Avalon Peninsula to $1.195. Prices vary across the province. Self-serve gas in central Newfoundland costs $1.22, while full-service gas on some remote communities on Newfoundland's south coast, for instance, costs $1.389 per litre.

George Murphy, researcher with the Consumer Group for Fair Gas Prices, said Thursday he was "thankful that [the increase] didn't happen the way it happened in other centres."

Gas prices surged across the country last week, with some consumers paying an extra 15 cents per litre immediately.

The PPO, which hasregulated fuel prices in Newfoundland and Labrador since 2001, did not raise prices last week.

Murphy said gasoline prices are likely to climb in the months ahead, with the busy summer driving season approaching and demand still outstripping supply.

"We still haven't seen refiners pick up to the capacity [for] the demand that's out there," Murphy told CBC News.