Gas Prices Surge in Kingston Ahead of Labour Day Weekend

Gasoline prices in Kingston have experienced a significant increase as the Labour Day weekend approaches. This surge is attributed not to the holiday itself, but rather to supply and demand issues stemming from disruptions in the U.S. According to Matt McClain, a petroleum analyst with GasBuddy, refinery problems in Whiting, Indiana have been a primary factor in the price hike.

The Whiting Refinery, recognized as the largest oil refinery in the Midwest, has faced operational challenges due to severe weather conditions, including flooding. McClain explained, “We’ve had some refinery issues in Whiting, Indiana, on the U.S side of things that has created an uptick in prices that has actually impacted not only Alberta, Saskatchewan and Manitoba, but a little bit of Ontario as well.” The flooding necessitated an emergency shutdown of the refinery, halting production for several days.

As cleanup and inspections are underway, the refinery is in the process of restarting operations, which can take several days given its size. “Once that refinery comes back online, and it is currently in the process of being placed back online, we should start seeing prices come back down,” McClain noted. Currently, average gasoline prices in Ontario are around $1.32 per litre, reflecting a five-cent increase from yesterday and a six-cent rise from last week.

With refineries unable to meet demand, neighboring facilities must increase their output to fill the gap left by Whiting. Once the refinery resumes full production, McClain anticipates a gradual decline in prices throughout September. He added, “That does not even factor in the idea that the summer blend of gasoline will be coming to an end here in the coming weeks as well, which will also help bring prices down overall.”

For consumers looking to manage their fuel expenses, McClain suggests utilizing resources like GasBuddy to identify the lowest prices in their area. “The price disparity is greater at this point because of the gasoline. The difference of the refinery may allow some stations to offer supplies at a lower wholesale price, potentially saving drivers up to 10 cents per litre,” he explained.

While the Whiting Refinery is on track to resume operations, relief at the pump may not be immediate. Drivers heading out for the long weekend should prepare for elevated prices as the market stabilizes.