Key Takeaways:
- After Russia’s invasion of Ukraine wrought havoc on international oil markets, gas stations across Atlantic Canada saw record price hikes.
- Because trading in furnace oil was so volatile, the EUB changed its maximum cost three days in a row.
After Russia’s invasion of Ukraine wreaked havoc on international oil markets, prompting record price hikes at gas stations across Atlantic Canada, New Brunswick motorists were faced with gas prices as high as $1.70 in some areas on Friday.
The Energy and Utilities Board, which regulates the maximum amount petroleum retailers can cost for fuel in New Brunswick, increased legal pump prices by 4.4 cents on Thursday. It granted another 8.5 cents on Friday as part of a special price setting.
Furious trading on international markets began Monday, sending the price of all fuels rocketing upward at a rate that was too fast for the once-weekly regulated price changes to keep up with.
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Diesel prices jumped even quicker than gasoline prices, requiring two price adjustments. In New Brunswick, the price increased by 18.7 cents in the same 2 days.
The EUB altered its maximum cost three days in a row because trading in furnace oil was so volatile.
It ended up 19.7 cents higher than it had been the day before.
In New Brunswick, all prices are new highs.
Invasion, sanction, and apprehension
Russia is a major international exporter of both crude oil and refined petroleum products, and the imposition of harsh economic sanctions against it in the aftermath of the invasion of Ukraine has raised concerns about global supplies.
As per Vijay Muralidharan, a senior consultant at energy analytics firm Kalibrate, this has triggered an oil bidding war affecting all products refined from crude.
In an interview with CBC News, Muralidharan stated, “The war has put fear into the market.” “You bid up just to make sure your supply is there because there’s paranoia.”
Consumers who buy petroleum products have had a difficult year. In New Brunswick, gasoline costs 44 cents more than a year ago, while diesel costs 65 cents more.
Source: Global News
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