U.S. Gas prices could leap by up to 60 cents a Gallon

U.S. Gas prices could leap by up to 60 cents a Gallon.(Yahoo).When Canadians head out on road trips this spring and summer, they can expect gas prices to take a bigger bite out of their wallets. But energy experts on this side of the border are divided over whether these hikes will be as high as U.S. motorists are bracing for.Media reports Monday out of the U.S. were suggesting gas prices could rise in some areas this spring by up to 60 cents per gallon (roughly equal to 15 cents per litre). But Calgary-based petroleum industry analyst Michael Ervin sees nothing to suggest hikes of that magnitude in Canada.Instead, he's predicting "modest" increases of about five to 10 cents per litre — "much much less than what we had become accustomed to seeing prior to the slump in the North American and global economy."But for analysts like Ervin, vice-president of the Kent Group in Calgary, there are a couple of factors that could mitigate against that increase this year.
"One is that we're unlikely to see much in the way of change in crude prices between now and mid-year. "Another factor that could come into play is surplus gas in Europe, something Ervin sees keeping wholesale gasoline prices relatively depressed throughout the spring and summer.
"As bad news as it is for refineries, given the spare capacity and low refiner margins, that does add up to good news for consumers."
On the other hand, at GasBuddy.com, a website that gives consumers in Canada and the U.S. the chance to find the lowest reported gas prices in their communities, co-founder Jason Toews is expecting somewhat higher hikes in Canada later this year.
"I think we're going to see a peak of around $1.40 in May," he said in an interview from Regina.
The $1.40 price would represent an increase of almost 20 cents over GasBuddy's reported national average of nearly $1.22 per litre on Monday.Read the full story here.