TORONTO, ONTARIO — (Marketwire) — 04/05/12 — The risk of gas prices reaching more than $1.60 per litre in Canada is not insignificant, according to BMO Economics. Gas prices are up sharply in many areas across the country – climbing as much as 3.6 cents in Ontario to nearly $1.40 per litre, and reaching $1.47 in parts of Quebec – ahead of the long weekend.
“Although crude oil prices are expected to hover near $100 a barrel in the year ahead, the risk of a near-term spike is elevated due to potential supply disruptions,” said Sal Guatieri, Senior Economist, BMO Capital Markets.
“The rising cost of imported overseas oil, together with a shortfall in domestic pipeline capacity, has forced about one-third of U.S. East Coast refineries to halt operations; meanwhile, the Iranian situation could disrupt oil shipments in the Strait of Hormuz, a key route for one-fifth of globally traded oil. This would likely push crude prices back to 2008-s high of $147 a barrel.”
“To manage household budgets, we recommend Canadians make full use of their rewards programs, many of which offer free fuel rebates. They are a very good way for Canadians planning to be on the road this holiday weekend to offset higher gas prices,” said Su McVey, VP, BMO Bank of Montreal.
BMO provides these fuel savings tips, which are good for the pocketbook and the environment:
Bonus tip: Roadside assistance plans can save you money. Most plans cover towing, battery boost or flat tire change, but they also limit the number of service calls per year. BMO Bank of Montreal MasterCard-s enhanced roadside assistance package includes unlimited service calls, up to 250 km towing distance, and free coverage for additional cardholders ($98/year).
Contacts:
News Media Contacts:
Carol Greene
(416) 867-3996
Peter Scott, Toronto
(416) 867-3996
Sarah Bensadoun, Montreal
(514) 877-8224
Laurie Grant, Vancouver
(604) 665-7596
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Twitter: @BMOmedia