Gas prices push through $1.50 barrier in N.B. for first time

New Brunswick gasoline prices jumped to all-time highs Thursday, including street prices above $1.50 for the firsttime in some communities.

It's the consequence ofa number of factors, but principally two straight months of sharply rising international oil markets.

Last week, the head of petroleum analysis for the online price tracking site GasBuddy told CBC News high prices are not likely to subside, at least for a while.

"We continue to live in this COVID era where there are various bottlenecks, various challenges and various imbalances that arise," said Patrick De Haan.

In its weekly setting of maximum allowed retail prices early Thursday morning, the New Brunswick Energy and Utilities Board lifted the limit on a litre of self serve regular gasoline 3.5 cents to 151.2 cents.

It's the third pricing record set by the board thismonth. Prior to October, New Brunswick's record high came seven years ago in April of 2014 and topped out just below $1.43.

Oil prices have risen steadily since collapsing 19 months ago at the start of the COVID-19 pandemic.

Increases over the last two months have been especially severe. On Wednesday, the price of Brent Crude Oil hit $85.85 US per barrel, its highest level in seven years and 32 per cent above its price in late August.

For Canadians however, current oil prices are effectively 10 per cent higher than seven years ago because of a deterioration in the value of the loonie since 2014.

Much of the run up in the price of oil has been caused by an intense energy crisisin both Europe and China, where shortages in natural gas and coal have driven up the demand for oil products.

"Some of the newest factors now were completely unexpected several months ago," said De Haan

"We have a looming energy crunch developing overseas where China is looking at a quite low amount of coal to feed their power plants, there's a natural gas shortage in Europe and all of that is supporting the price of oil simply because crude oil can be used as a backup to generate electricity or it can be used to heat homes."

Pump prices in New Brunswick have now escalated 48.7 cents since last October and, although most of that has been caused by the rise in oil prices,there have been other factors.

Last spring, carbon taxes added 2.2 cents to prices. Several weeks later the EUB raised margins retailers could charge by onecent and increases in ethanol markets have added another cent.

In addition the HST, which is designed to rise when prices go up, is adding another 6.3 cents.

Most New Brunswick stations were staying just below the $1.50 level Thursday, although a few have crossed over. According to GasBuddy,a pair of stations in Campbellton were charging 150.6 cents per litre Thursday morning.

Gasoline prices at those levels are new to New Brunswick, but other parts of Canada have been dealing with them for some time.

High taxes and unique supply issues have had prices in Vancouver above $1.50 every day since April andWednesday drivers there were paying $1.65. Prices in Montreal surged past $1.50 last week and in Labrador City drivers are currently paying$1.70.