The price of oil may have dipped to it’s lowest level in years – but Lower Mainland drivers are still feeling pain at the pump.
Gasbuddy.com Senior Petroleum analyst Dan McTeague says that’s because we’re relying on imports in a tight market.
Speaking on The Sean Leslie Show with Shane Foxman, he says Canada simply hasn’t kept up when it comes to refining our own gas.
“Canadians have allowed themselves to be painted into a corner. We’ve allowed refinery after refinery to shut down, and what we’re looking at here is a supply shortage. Particularly in the Pacific Northwest, which is responding to a supply shortage in California.”
McTeague says years of shuttering local refineries have allowed lower mainland gas prices to skyrocket.
“Oil can drop as much as it wants. There’s plenty of it globally, domestically. But there just isn’t enough refinery capacity out there and if you want that product, the market is saying you have to pay a lot more. And that’s one of the reasons why we’re really held hostage to a supply and demand scenario, much of it our own making here in Canada.”
McTeague says production problems at U.S. and Alberta refineries, and a spike in demand, mean gas could keep getting pricier – even as oil tanks.