'It's gone up again?' P.E.I. gas prices leap in wake of hurricane

Some Island driverswere caught off guard Wednesdaymorning, when they arrived at the pumpsto see fuel prices had shot up 8cents a litre to $1.20for regular, self-serve gasoline.

"Oh my goodness, I knew it went up on the first [of the month.]But it's gone up again?" asked Wendy Large.

"I didn't know about this until I started driving into town, and saw it on the first gas station I came to," added Drew Hansen.

"If it keeps going up and up, I'll just have to make a decision how much I want to run around in the car."

Hurricane Harvey to blame, says regulator

Tuesday night's unscheduled price adjustment came just six days after the Island Regulatory and Appeals Commission (IRAC)raised the price a few cents in its regular, start-of-the-month review.

Over those six days, IRACsays the wholesale price of fuel shot up dramatically, forcing the unscheduled adjustment.

"That's primarily due to to the impact of Hurricane Harvey and the resulting impact it had on refining capacity in the southern United States," said Allison MacEwen, IRAC'sDirector of Regulatory Services.

If it keeps going up and up, I'll just have to make a decision how much I want to run around in the car.- Drew Hansen

That explanation didn't sit well with some drivers Wednesday.

"I'm pretty sure there's lots of reserves on hand.It's a gouge for sure," said Allan Clark.

"It doesn't make any sense because we've got refineries in Canada as well," added Hansen. "So it shouldn't have that much effect on what's happening here."

Low U.S. supply driving up demand

But MacEwen says as thesupply of oil in the southern U.S. has dropped offin the past week, that's increased the demand for oil from Canadian refineries.

"So there's a competition for product that occurs there and it [drives]the wholesale price up," explained MacEwen.

Retail prices are rising across the continent, and MacEwenpoints outthe P.E.I. price is still below the Canadian average of $1.23/litre.

John Wincey, who owns Wilson's Gas Stop in Charlottetown, said he doesn't expect the current price will keep Islanders from driving.

"It's been a lot higher than thisbefore," said Wincey."We've seen fuel sales go down when it was up around $1.40 or $1.45. But at $1.20 I don't think they will."

Another price jumppossible

Other petroleum product prices also shot up Wednesday morning, as a result of IRAC'sunscheduled adjustment.

• Heating oil prices up 4.0 cents per litre to $0.763.
• Diesel prices up 3.0 cents per litre to $1.127

IRAC will meet before the end of this week to review prices again. MacEwen says it's hard to predict at this point whether Islanders should brace for another hike.

"There's another hurricane in the works, and the track of that is a little uncertain," he said."So that will have a bearing on how prices will go over the next week or so."

• MORE P.E.I. NEWS |As classrooms become more diverse, UPEI rethinks the way it teaches
• MORE P.E.I. NEWS |Inukshuk in Bonshaw toppled, likely won't be rebuilt