Money B.C. gas prices could jump 45 cents per litre if Alberta turns off the taps: analyst

05:05  17 april  2018
05:05  17 april  2018 Source:   Global News

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Dan McTeague, an analyst with GasBuddy.com, gave Global News a look at what that disruption in oil flows could mean. “If we do see a disruption in the Trans Mountain Pipeline, the existing pipeline, if Alberta decides to turn off the taps entirely

Dan McTeague, an analyst with GasBuddy.com, gave Global News a look at what that disruption in oil flows could mean. “If we do see a disruption in the Trans Mountain Pipeline, the existing pipeline, if Alberta decides to turn off the taps entirely

Gas prices in Metro Vancouver have been hovering around $1.50 per litre for the last few weeks.© Jordan Armstrong / Global News Gas prices in Metro Vancouver have been hovering around $1.50 per litre for the last few weeks.

With both Alberta and Saskatchewan now threatening to "turn off the tap," potentially starving B.C. of oil and gas, a fuel industry expert says British Columbians should brace for pain at the pump.

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Analyst says Alberta cutting off petroleum exports to BC would have 'devastating consequences'. “The impact would be at the very least a a litre potential for most gas stations, if you could in fact find gas at most stations,” says GasBuddy.com petroleum analyst Dan McTeague.

Analysts have provided mixed forecasts on how much fuel costs would rise if Alberta cuts off all petroleum product shipments to B . C Kent Group elder vice-president Michael Ervin stated he expects fuel prices to rise in the region, but by a more modest 10 cents per litre “above what is already a

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Dan McTeague, senior petroleum analyst for Gasbuddy.com says if Alberta Premier Rachel Notley follows through on threats to use legislation restricting fuel exports, prices could jump by around 30 per cent.

READ MORE: New law would allow Alberta to restrict flow of oil and gas

The two western provinces have proposed legislation to restrict fuel exports as the dispute over the future of the Trans Mountain pipeline deepens.

"A scenario like this would see at least two-thirds of all fuel products potentially cut off, including jet fuel, including diesel and gasoline," he said.

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Analysts have provided mixed forecasts on how much fuel costs would rise if Alberta cuts off all petroleum product shipments to B . C Kent Group elder vice-president Michael Ervin stated he expects fuel prices to rise in the region, but by a more modest 10 cents per litre “above what is already a

-a- litre gas the starting point if Notley closes taps to B . C .: analyst . Lois Mitchell, which made reference to a 15- per - cent cut in approvals to ship oil to Ontario refineries under the National Energy Program of prime minister Pierre Trudeau.

"Now, assuming no controls were immediately imposed... the wholesale price of gasoline would rise about 45 cents a litre."

McTeague added that even Lower Mainland drivers who slip across the border to Washington to save on fuel costs would likely find themselves paying more.

"Bear in mind that the Trans Mountain pipeline does deliver not an insignificant amount of oil to Washington State refineries, so it's not like this wouldn't affect prices in the Pacific Northwest," he said.

McTeague said because jet fuel shipments could also be blocked, air travellers may find the cost of a flight heading skyward as well.

READ MORE: British Columbia looking at potential legal action against Alberta over oil restriction bill

Alberta's proposed legislation would require energy companies to get an export licence for natural gas, crude oil and refined fuel like gasoline or jet fuel. Export restrictions could also be imposed on pipelines, rail cars or trucks.

Notley says the move is not designed to punish B.C. for delays in the Kinder Morgan Trans Mountain pipeline expansion, but that Alberta is “very committed to putting pressure on B.C. to come around and focus on what this pipeline actually means.”

On Monday, B.C. Attorney General David Eby rejected that characterization, arguing it was clear that Alberta was targeting B.C., and threatening to take legal action over what he suggested was an illegal and unconstitutional move.

Alberta Cut to Oil Shipments Would Ripple Across West Coast .
Alberta’s plan to cut crude and fuel shipments to British Columbia could ripple across the entire west coast of North America, causing pump prices to surge and shifting the flow of international crude. Legislation introduced Monday would allow oil-rich Alberta to curb the flow of crude and fuel if neighboring British Columbia doesn’t drop its opposition to Kinder Morgan Inc.’s Trans Mountain pipeline expansion. The existing pipeline supplies the Vancouver area with as much as 60 percent of its refined products.If Alberta makes good on its threat, Vancouver drivers can expect to pay more at the pump.

Source: http://ca.pressfrom.com/news/money/-70962-b-c-gas-prices-could-jump-45-cents-per-litre-if-alberta-turns-off-the-taps-analyst/

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