With crude oil topping US$90 a barrel Gasoline prices shatter an all-time record

Canada’s Oil Industry. Image credit: Wikipedia

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Calgary/CMEDIA: High gasoline prices across Canada reportedly shattered an all-time record on Friday as crude prices soared above US$90 per barrel and North American refineries keep up with demand.

The national average retail fuel price sat at 151.6 cents per liter as of 1. p.m. ET Friday, according to fuel price tracking website GasBuddy.com, is the highest average price on record, according to the website, which has data as far back as 2008.

The prize is also 38 cents higher than last year’s average price at the pumps, 11 cents higher than last month’s average, and almost four cents higher than the price of gas just last week.

Over the last month, Canada has seen the national average retail price for gasoline steadily rising after starting the new year around the 145 cents per liter mark.

The price of the gasoline paid by drivers at the pump is based on four factors — crude prices, refinery margins, retail and marketing margins, and taxes.

Ease of public health restrictions related to the COVID-19 pandemic travel demand and economic activity picked up by the global economies leading to soaring of crude prices to an eight-year high.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to a small increase in production, and that will help ease the pressure.

And if central banks raise interest rates this year as anticipated, personal consumption as well sd demand for gasoline would reduce.