It's the last thing you want to hear at the start of the new year, but it's a reality to face as gas prices could climb to their highest levels since 2014.

According to Senior Petroleum Analyst Dan McTeague, Alberta's increased carbon tax is partially to blame.

"The 2.35 cent a litre increase that we saw in Alberta pretty much makes a 5 to 7 cent a litre average hike compared to 2017 more of a probability and a reality then say in other provinces where it more like 3 to 5 [cents]."

Carbon pricing does not apply to every province which leaves another factor at play, which McTeague said is often overlooked: The weak Canadian Dollar.

"It means an additional 2, perhaps even 3 cents a litre. While the rest of the world seems to be enjoying higher oil prices and taking advantage of it, most notably the United States, Canada, due it's pipeline restrictions, cannot. It's not just something that is hurting the oil industry, it's actually hurting consumers right across Canada, whether they realize it or not."

When it comes to the numbers, McTeague expects prices to remain stable through January and Februrary, but when the season changes so will prices.

"From March until at least October, we're looking at a $1.15 as the new normal, as an average price here in Alberta and right across our region in Airdrie."

As of January 3, the highest average prices in Alberta were in the northwest near Grande Prairie, with the highest price in Coronation at 126 cents a litre according to GasBuddy.

Many stations in Airdrie are selling between 105 and 107 cents a litre, with others at 110.

 

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