In recent times, Canadians have had to put up with prices of gas going up. However, it seems that it is expected to increase more this year. Canada is a place where gas prices tend to influence a lot of things in the economy. With this new development, so many lives are bound to be affected. As Canadians are getting used to the already increased price, it seems that in 2024, the gas prices will be going up again.
The use of gas in Canada
Gasoline plays a central role in the lives of Canadians. People in the country depend on gas to power their personal vehicles. The same gas is also relied on when it comes to driving the trucks and trains that transport goods. Canada has one of the biggest global construction industries where heavy machinery are deployed on a daily basis to build infrastructure. IN the same way, Canada is known to depend on gas heavily for heating systems. It is the coldest country in the continent of North America because of its proximity to the arctic regions. Since Canadians depend on fuel for a lot of things in the country, there will definitely be a high demand for the product. Because of this reliance on gas, any fluctuations in gas prices will certainly affect nearly every aspect of life in Canada.
Gas Prices in Canada
In Canada, it takes a certain price of gas to fill up your car with fuel. However, in the country, this price have been unstable in recent times. Canada is no different from many other countries in the world. This means that prices of items like gas can change a lot. One reason why the price of gas tend to change a lot is due to many variables. Gas prices depend on things like the cost of oil, how much gas people need, and even events happening around the world. When gas prices go up, it costs more money to drive cars, trucks, and even heat homes.
What is the Expected Gas Price Increase in Canada for 2024?
Why the issue of gas prices going up is not new in the country, it seems that many Canadians are not ready for any more increases. However, in 2024, Canadians are facing yet another round of price increases at the pump, which raises important questions: How much will gas prices rise, and what are the underlying factors driving this increase? To better understand these changes, let’s dive into the current state of gas prices in Canada, the expected trends for 2024, and the reasons behind this upward shift. Experts have studied the gas supply industry and have been able to predict that in 2024 gas prices in Canada will keep going up. At this point, it is quite hard to say exactly how much, some predictions suggest prices could increase by 10 to 15 cents per liter. This may not seem like a lot, but when you try to fill up your tank, you begin to appreciate the value of the little change you will have to lose every time you buy gas. For example, if you usually pay $1.50 for a liter of gas, you might end up paying around $1.60 or more.
Why is gas price in Canada increasing?
People are curious as to why the price of gas is increasing in Canada. According to experts that have been watching the global market, this is due to several factors. We are going to briefly analyze each factor to understand why Canadians will have to pay very much for gas. These factors include:
The global price of oil
Due to multiple factors, oil prices around the world is going up. Most people do not understand that gas is made from crude oil. Crude oil is the raw material from which gasoline is refined. And when the cost of this raw material increase, gas prices usually do too.
The level of gas supply available
This is also an important factor that affects the price of gas. For example, if more people in Canada need gas and there is limited supply, the prices go up. This can happen when more people are driving. One case to look at in Canada is the increase in population. In recent times, Canada has seen the an influx of more people coming into the country and settling down. In the long-term, this sharp population growth will deplete oil resources and force the prices of gas to go up.
Environmental activities
As Canada undergo population increase, there has been an increase in environmental activities. This has led to an increase in pollution and the country is really working hard on reducing pollution. This action is good for the environment. But then again, some of these policies are likely to make gas more expensive because they make things more difficult for gas-producing companies. In turn, these companies will add extra costs to the pump prices of the gas to compensate for their losses during the production phase.
Events around the world
One more reason why gas prices are going up in Canada could be due to global events. There are many events happening around the world that can affect the price of gas. For example, wars or natural disasters can mess up the supply of oil and gas, making prices go up.
How gas prices change in Canada
The issue of changing gas prices in Canada is very common in the country. This is because of the numerous factors explained above. In Canada, price variations of gas can be from year to year but sometimes this can even be from week to week. Before now, the price of gas in Canada have changed significantly across the country. This was because of the differences in provincial taxes as well as the costs it takes for supplying companies to transport fuel to different regions. For instance, prices in remote areas tend to be higher due to the additional costs of delivering fuel to those locations which are usually inaccessible to heavy trucks.