Gas prices jump after gas pipeline closes in Washington state


VANCOUVER (NEWS 1130) – Pump prices have risen about six cents a gallon for normal gasoline on Friday and are expected to rise more until Sunday.

As predicted by Dan McTeague of GasBuddy, the two-day shutdown of the Washington State Olympic pipeline has raised prices across the continent. In parts of Vancouver, Richmond and Surrey, people already pay about 137.9 per liter of regulars. McTeague says there's a new 11 cents raise for tonight, which he adds is extremely rare.

"Normally, you would see an increase of five to six cents per liter over several days," he says. "Six cents are considered substantial; 11 is probably unprecedented. "

He says he has not seen a huge increase since the "super energy bubble" before the financial crisis in September 2008 after Hurricane Ike, which toppled several US refineries. His advice is to either fill up as soon as he can today or endure until Thursday or Friday next week, when prices are expected to fall again to regular levels.

"I do not remember all my time doing this – and I've been working on that gas-consuming record for over 20 years – where there was an increase of 11 cents, except in 2008, when eastern Canada saw a 12 cents a fell, but that was it, "says McTeague. "Although the pipeline has been repaired and is running through Thursday night, it will take several days for it to reach the market."

He says gas stations do not have much price protection without incurring immediate revenue losses.


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