Petro-Canada recorded record sales in 2017 and fuel demand remains “robust” despite the increase in prices. Gas prices continue to rise across the country, however, Canadians show no signs of slowing down the amount of gas and diesel they put into their cars and trucks.
Pump prices have risen almost 20 cents per liter in Canada in the last three months for regular gasoline and are expected to continue increasing this summer.
On Wednesday, a liter of gasoline cost more than $ 1.60 at some stations in Vancouver.
Suncor, the parent company of Petro-Canada, announced on Wednesday a record volume of sales in its retail and wholesale operations in the country.
“People have not yet noticed,” said Steve Williams, CEO of Suncor after the company’s annual general meeting in Calgary. “Customer demand continues to be solid.”
At some point, Williams says that “customers will react when prices go too high and that will be worrisome.”
Vehicle sales reached record highs
Vehicle sales reached record highs also in 2017, largely because people started buy trucks and SUVs. Meanwhile, car sales reached their lowest level since 1964.
“One of the things we found in our research is that consumers change their buying behavior for about three months when gas prices go up,” said Rebecca Lindland, automotive analyst at Kelley Blue Book, a vehicle valuation company with headquartered in Irvine, California.
“Then they will go to a smaller vehicle, but after about three months, people go back, and buy bigger cars. And they buy a car that meets their long-term needs and desires against the short-term pain of paying a little more for filling the tank. “
Summer driving season, with one dollar in play
The reasons behind the rise in gasoline prices are plentiful, including that oil prices are at their highest point in three years, the Canadian dollar is weak against the US dollar, and the summer driving season is at March.
The oil industry in general does not seem worried about the fact that the increase in oil prices will affect the demand of crude worldwide.