Upward trend at the pumps: Experts say prices could soar if demand outpaces supply

HALIFAX -

Oil and gas industry experts say the Maritime province's could soon see prices at the pump reach $1.40 a litre as demand outpaces supply.

Given that borders are now open and travel is permitted between provinces, a price increase was expected.

"All I know is I don’t like the prices, but coming summertime we kind of expected price is going up," says motorist Jerome Chiasson.

A two-cent per litre jump overnight in the price of regular self-serve gasoline isn't significant for some motorists.

"It's not that big of a deal for us to come out once in a while pay a little bit extra at the pump,” says Emily Reid.

.As the world recovers from the pandemic, demand is growing. The problem is supply isn’t ramping up to meet the increasing need.

In the Maritimes, regular prices range from $1.34 a litre in Nova Scotia to nearly $1.38 in New Brunswick.

Oil and gas industry expert Dan McTeague says "we’re heading for a significant price impact, a price shock if you will, and that shock isn't likely to abate anytime soon.”

McTeague predicts pump prices could easily reach $1.40 or even higher.

“There’s a massive disconnect between supply of oil, which is low demand which is increasing and rapidly. Something is going to have to give,” he says.

McTeague adds that an increase in carbon pricing and the introduction of the Federal government's clean fuel standard will both have an impact on gas prices down the road.

"I don’t see a scenario whatsoever where the prices will be this low. If you think $1.34 is a lot I guess bluntly speaking, you ain’t seen nothing yet,” McTeague says.

He says there are other factors, like hurricanes, that also play a role in setting gas prices.

Creating what might be a bumpy ride for the summer travel season.