Unpredictable storms in the southern United States may cause volatile gas prices in the upcoming weeks and perhaps for most of September, but it's unknown how much that will impact Airdrie.

That's according to the latest fuel outlook from GasBuddy. Dan McTeague, senior petroleum analyst at GasBuddy, said even though there has been a few cent increase in the price of gas lately, you won't see a drastic shift. Southern Alberta has largely avoided the worst gas spikes due to closures of refineries in Texas following Hurricane Harvey.

"Calgary, here in Airdrie, right across most of Southern Alberta, you've seen about a net 7 cent a litre increase. That may sound like a lot, but it pales in comparison to the 18 to 20 cent increase that was seen and felt in Eastern Canada."

McTeague explained that those refineries largely supply the Eastern United States. Southern Alberta's prices are based on the Chicago Spot Market, which did see an increase recently.

McTeague said that it also remains to be seen what will happen following another storm, Hurricane Irma.

"If it happens to pass over Florida, swing around and hit the gulf coast again, it could put a number of communities at risk, everything from pretty much Pensacola, Florida all the way out to past New Orleans."

Beside the obvious human toll, McTeague said Irma could cause disruptions to fuel supplies.

McTeague explained that worldwide events impact gas prices because those prices are set in global terms.

"We're price takers, not price makers. Canada has long since walked away from the notion of a made at home price for Canadian fuel. If memory serves me correct, it was one of the main positions by the Alberta Government back in the 1980s. That's why when prices spike globally for our commodities, we benefit from the higher price of those commodities, but we also have to pay for those higher priced commodities even if they're made in Canada."

 

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