CALGARY — A gas price analyst says motorists in some U.S. regions can expect to take a hit at the pump thanks to tariffs on Canadian oil imports.
U.S. President Donald Trump has pressed ahead with a 10 per cent levy on energy as well as across-the-board 25 per cent tariffs on all other goods from Canada.
Patrick De Haan with GasBuddy says the northeastern United States can expect to see the quickest and biggest pump price increases, as much of that region’s fuel comes directly from the Irving Oil refinery in Saint John, N.B.
He says by mid-March, that could add US$3 to US$6 to the total bill of a typical 15-gallon fill-up in that area.
De Haan adds that it’s not so simple for U.S. refineries to simply switch to processing domestic crude, as many of those facilities and the pipelines that connect to them have been configured to handle heavy Canadian crude, not the lighter product produced in Texas.
Meanwhile, the Explorers and Producers Association of Canada, which represents conventional oil and gas producers, says the move shows Canada can no longer afford to proceed with major energy infrastructure projects at a “slow and costly rate.”
“This crisis demonstrates the clear and urgent need to take immediate action to build natural resource infrastructure and diversify our economy to other markets beyond the United States, growing our economic power and supporting Canadian values,” the group said Tuesday.