Motorists to pay still more at pump: analyst

Canadian motoristswill likely pay more at the pumps in the coming weeks,according to one industry analyst.

"We're likely to see prices increase somewhat more," said Michael Ervin, president of consulting firm MJ Ervin & Associates Inc. in Calgary.

Over the next month or so, MJ Ervin expects prices atgas stationsto increase by anotherthree tofive cents, said senior associate Catherine Hay.

MJ Ervin conducts a weekly survey of gas prices at 400 gas stations across the country. Andthis week it reported that Canadian motorists, on average, paid $1.038 a litre for regular gas at the pumps, makingit the third straight week thatthe price of gasolineat the pumps has stayed above $1 a litre.

The new average represents an increase of 0.8 cents a litre from the previous week.

Ervin saidthe recent increaseisn't significant in and of itself, but that it "certainly is consistent with the general upward trend of prices this year."

By comparison, Canadian motorists paid on average98.8 cents a litre in the same period a year ago, according to historical data by MJ Ervin.

The reason for the higher prices of late has been because of higher wholesale gas prices in Canada and the United States, he said. Furthermore, the production of gas has declined in recent weeks because of routinespring maintenance at refineries, further tightening supply, he said.

According to the weekly survey, Albertan motorists in Red Deer paid the lowest priceof 94.7 cents a litre for regular gas. Those living in Labrador City paid the heftiest prices of $1.202.

The weekly survey, which MJ Ervin began in 1998, takes a one-day snapshot of gas prices on Tuesdays, Ervin said.

According to Natural Resources Canada, the average price of gasoline has risen 29.3 cents a litre between 2001 and 2006.