Gas prices jump overnight in some Canadian markets, led by BC, Quebec

Gas prices are now below $2 a gallon on average in Tennessee

Gas prices are now below $2 a gallon on average in Tennessee

Over seven days, Saskatoon saw gas prices rise from 99.9 cents a litre to 109.9 cents as of Friday.

The price of gas is spiking in Montreal as the long weekend approaches.

The cheapest local listing remains Costco at 4411 Walker Rd., selling regular gas at 113.9 cents as of 10:30 a.m.

Major gasoline refineries in the USA were shut down by Harvey, which also caused the temporary shutdown of the Colonial Pipeline - what McTeague calls the "aortic artery" of gasoline transportation for the US Atlantic Coast.

On Monday, the average posted price in Montreal was $1.16 for a litre of regular, a price that jumped to $1.27 a day later.

McTeague said the United States has shut down five million barrels of gasoline production, due to Harvey and its flooding, which is more than twice Canada's refinery output.

Dan McTeague, senior petroleum analyst with the price-comparing website, says it's a matter of when, not if.

In Canada, prices are also affected by a lack of competition among gasoline wholesalers and taxes, according to McTeague.

"I think about three weeks is a good estimate, until then I don't see the prices dropping", he said.

"It's crisis 101 - 31 per cent of all US gas production is now idle", he said.

"The refineries are actually built to withstand a hurricane", he said.

Gas prices in Regina jumped by seven cents a litre earlier this week. "It depends on how damaged the refineries are and how quickly they can be running again". "And simply because buyers in the States would be looking to Canada for supply, we're seeing higher wholesale prices in Eastern Canada, as well", Ervin said.

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