Gas prices jump overnight in some Canadian markets, led by BC, Quebec

Gas prices expected to increase Labor Day weekend due to Harvey

Gas prices expected to increase Labor Day weekend due to Harvey

Analysts say the hikes will differ greatly by region, with prices in Eastern Canada jumping by as much as nine cents per litre over the Labour Day long weekend, while prices in Western Canada remain relatively stable.

All this, because as much as 31 per cent of US gas production is offline due to the storm, McTeague said.

For example, Thursday's price at the pumps in the Greater Toronto Area was about 119.0 cents a litre - but was expected to hit 124 cents a litre on Friday and then soar to a projected 132 cents a litre on Saturday.

The effects of hurricane Harvey are seeping across the border into Canada.

According to the Ontario Gas Prices, an online gas-price watchdog, the average Ontario motorists are paying about $1.20 per litre for regular unleaded fuel, but prices are still rising.

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IHS Markit said in a report Friday about 3.6 million barrels per day of Gulf Coast refining capacity or 20 per cent of the US total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates. Across Canada, gas prices are up an average of 9.5 cents compared with last week.

McTeague said how much the price actually jumped up works out to be closer to nine cents, but the message is the same.

McKnight said he thinks gasoline prices will drop back by two or three cents per litre next week throughout Canada.

"It's likely we are going to see high, sustained prices as a result of the shortage in the United States", he said. McTeague says he expects prices to stay between $1.25 to $1.35 until mid to late September.

Compared to Thursday, the commodity price has already jumped more than six cents a litre in NY, meaning the increase in New Brunswick is likely to happen tonight.

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