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Page added on January 21, 2023

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More pain at the pumps in 2023

Consumption

A key driver of inflation – high gasoline and diesel prices – are expected to continue well into 2023, and it’s not just high oil prices and loss of Russian oil that will drive volatility, according to a new forecast from Kalibrate.

The retail analytics firm warns gasoline and diesel prices could be even higher in 2023 than they were in 2022, though some relief could come towards the end of 2023 for B.C., should the Trans Mountain pipeline’s new line go into operation, which could provide more refined fuels from Alberta.

The world has lost 4.5 million barrels of refining capacity over the last two years, Kalibrate estimates, about 500,000 barrels of which were North American barrels.

In a market where refining capacity is already tight, a single refinery outage in a given region can send prices skyrocketing.

“It should be expected that as we move forward in 2023 that this pattern of increased volatility and higher prices will continue,” the Kalibrate report warns.

It was, in fact, refinery outages, not high oil prices, that drove gasoline prices to record breaking levels in the summer of 2022.

“During the summer season refinery shutdowns for scheduled or unscheduled maintenance, in part due to the adjoining wildfire season in California, led to prices rising to new heights across all markets,” the report explains. “Consequently, the West Coast of Canada and the U.S. experienced record high prices during the summer season.”

Crude oil prices are expected to remain higher in 2023 than they would be, were it not for sanctions on Russian oil.

A combination of high oil prices and tight refining capacity could mean gasoline and diesel prices breaking some new records in 2023, even if Canada is in a recession — something that normally tempers oil and gasoline prices.

“By mid-2023, Canada is expected to be in a recession,” Kalibrate warns. “It is quite possible that during this recessionary period that fuel prices will continue to inflate to levels that exceed those records set in the summer of 2022.

“The West Coast is expected to continue to see the most dramatic swings, but possibly with some relief to come from the startup of the Trans Mountain pipeline which can deliver additional crude and refined products to … British Columbia.

BIV



8 Comments on "More pain at the pumps in 2023"

  1. theluckycountry on Sat, 21st Jan 2023 4:00 pm 

    “A key driver of inflation – high gasoline and diesel prices – are expected to continue well into 2023”

    Well no shit Sherlock, that’s what happens when you run out of cheap oil and start mining expensive oil.

    I’m keeping my V6 for now, primarily because I don’t drive it often

  2. ee ee ee on Fri, 27th Jan 2023 10:33 am 

    New Zealand declares state of emergency as floods cause chaos. New Zealand officials have declared a state of emergency as the biggest downpour on record has caused flooding and traffic chaos on New Zealand’s North Island. Worth noticing the worlds:biggest downpour on record

    Prepare to die. You refuse to obey me. You will all die.

    https://www.youtube.com/watch?v=jcS83m10hjc

  3. ee ooe eooe on Fri, 27th Jan 2023 10:53 am 

    Subzero temperatures recorded in South Korea, Japan; flights, cancelled

    https://www.youtube.com/watch?v=5HtO9LLHehM

    You refuse to obey me. Judgment has been done on earth and you will all die.

  4. Adi on Fri, 27th Jan 2023 11:15 am 

    It should be expected that as we move forward in 2023 that this pattern of increased volatility and higher prices will continue

  5. ee ee ee on Fri, 27th Jan 2023 11:46 am 

    Shell to review home energy business in UK, Germany, Netherlands

    https://www.youtube.com/watch?v=xlUzgPzN9mI

    You refuse to obey me. You will all die. Wait until the electrical grid in shutdown permentaly in Western Europe and Esteran Europe.

    You should have killed the Jews when I asked.

  6. ee iii iee on Fri, 27th Jan 2023 11:54 am 

    I told you to cancel the Holocaust remember day. Canada will be completely destroyed because of the action of Trudeau. This apply to Quebec.

  7. ee ee e on Fri, 27th Jan 2023 12:05 pm 

    Is Blinken a Jews. If he is a Jews why is he still working for US government. I ask biddet to fire all the jews.

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