Driving around just north of Toronto this week, I saw gas stations posting 81 . As noted in the latest issue of Fuel Fact, published twice a month by Ervin, we're into peak demand season when people do the most driving. I think any increases will be fairly modest. The balance between supply and demand is already reflected in the latest prices. If wholesale gasoline prices go much higher, Ervin says, they'll sow the seeds of their own demise.
Current prices make it a profitable market, ready to attract refiners from outside North America.
Crude oil prices have come down since last year, but gasoline inventories in the U.S. especially are still low. The combination of low supply and high demand drives prices up. Judging from the frequent forwarding of those emails, however, it seems a lot of people believe a consumer boycott will help to force prices down. Margaret Gray doesn't think it will work. Straight Goods asked Honda Canada spokesperson Jim Miller if rising fuel costs have had any impact on sales of the gas-electric hybrid Insight, which we reviewed here last year.