Gas prices hit record highs across the country_freckle removal scotland

Gas prices hit record highs across the countryCanadians in most parts of the country are waking up to higher gas prices on Friday, with prices either well above $2 a litre or creeping closer to that benchmark.

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Gas prices have jumped several cents in most parts of the country as fuel supply remains tight

Nojoud Al Mallees · CBC News(Alex Lupul/CBC)

Canadians in most parts of the country are waking up to higher gas prices today, with prices either above $2 a litre or creeping close to that benchmark.

According to Gas Wizard, a site that tracks gas prices across Canada, prices have jumped by four to six cents in many urban centres across the country. In Vancouver, the price of regular gasoline reached $2.17.

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Prices on the Prairies have remained unchanged over the last day. 

"The average in Canada is going to get a lot closer to that $2-a-litre psychological barrier, if you will. And it's not likely to end there any time soon," Dan McTeague, president of Canadians for Affordable Energy, told CBC News. 

The territories are also experiencing high gas prices. In Yellowknife, prices jumped four cents overnight to $1.83, while holding in Whitehorse at $1.90. 

Gas prices have risen rapidly over the last year, with the Russian invasion of Ukraine exacerbating the trend. Last May, the average gas price in Canada was $1.32.

Summer, diesel contributing to spike in prices

While there are several factors that contribute to the price of gas, the largest driver of what people pay at the pumps is the price of crude oil, says Vijay Muralidharan, director of consulting at energy analytics firm Kalibrate in Calgary. 

"The crude pricing, it's not a new phenomenon," said Muralidharan, adding that the market was tight before the war in Ukraine. 

With the start of "driving season," prices were expected to jump as they historically do between the months of April and September, he said. 

Another factor driving gas prices, according to Muralidharan, is the global shortage of diesel, which has pushed up prices significantly. Given that gasoline and diesel are both produced from crude oil, the price of one naturally drives the price of the other. Otherwise, producers would focus on producing diesel, he said.

"To produce more gasoline, the margin of gasoline should match diesel," said Muralidharan. 

Diesel prices are well above $2 in most parts of the country. In St. John's, the price of diesel sits at $2.73. 

Canadians continue to see cost of living rise

All Canadians are being impacted by the rise in fuel prices, McTeague said, regardless of whether they drive or not, given that goods are transported by vehicles that rely on diesel.

Truckers in Moncton have noticed the sharp increase in the cost of filling up their tanks. Danny Douthwright drives from Moncton to Prince Edward Island hauling fries for McCain's twice a day. Every three days, he says he fills up $800 worth of fuel. 

"I'm glad I don't pay for it," he said. 

WATCH | Taxi and Uber drivers talk about the impacts of higher gas prices:

Taxi and Uber drivers talk about the impacts of higher gas prices

19 hours agoDuration 0:54Taxi and Uber driver talk about the impacts of higher gas prices in downtown TorontoCanada's inflation rate jumps to new 31-year high of 6.7%

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