Canadians already hit with gas price shock could soon be paying even more at the pumps due to supply problems and the possibility of conflict in the Middle East, the Bank of Montreal says.
Gas prices across Canada jumped from an average of $1.20 in January to around $1.40 this week. That was the average pump price in Toronto this week, and in Montreal prices are hovering around $1.47. They are now 8 per cent higher than they were at this time last year, even though oil prices are slightly lower than they were in April of 2011.
The risk of gas prices hitting $1.60 per litre are “not insignificant,” BMO Capital Markets senior economist Sal Gualtieri wrote in a note Thursday.
From: http://ping.fm/o3ZZw
