5 To 10 Cents More For Gas This Spring - Analyst

February 07, 2012

The talk out of the U.S. Monday was that gasoline prices could rise as much as 60 cents per gallon (15 cents per litre) this spring, but a Calgary-based oil industry analyst is not convinced we'll see a hike that big in Canada. Michael Ervin, of Kent Group, predicts a more 'modest' increase of between 5 and 10 cents per litre. Prices traditionally rise in the spring, but Ervin says there are a couple of factors that could keep the increase down. He says the price of crude is not expected change much between now and the middle of the year. He also points to continued soft demand for gasoline, meaning OPEC is unlikely to make any rash moves to tighten production or raise prices.