Drivers swamp local stations as gas hike looms

Drivers swamped service stations along South Bayview and across the area this afternoon in response to fears that gas prices will rise as much as 4.5 cents a litre overnight. At the Esso station at 1840 Bayview (above) cars were lined up into both Bayview and Broadway Ave. as drivers waited to get into the station. Motorists were both backing up and wheeling desperately to get their cars into position with the filling pumps. The reason for the increase? According to information published by the CBC, gas prices usually rise in the spring as refineries shut down to convert from producing diesel to gasoline as the summer driving and vacation months approach. But this year, a shutdown of four refineries in Pennsylvania as well as five more in Europe has severely cut North American supplies. The price hikes could also be due to a confluence of other factors, mostly geopolitical events outside of Canada’s borders as domestic prices tend to follow those in the U.S. closely. The reasons for the rising price of gasoline vary — ranging from higher crude prices on the back of a falling U.S. dollar to refinery supplies, seasonal demand and Middle Eastern political instability. Speculation in wholesale markets can also be a factor. The threat of oil shortages as a result of a potential escalation of a conflict between the U.S. and oil-rich Iran is another contributing factor this year. CBC News