Pump prices to remain high, gas tax break off table

Last Updated: Friday, May 18, 2007 | 10:11 PM ET

CBC News

Drivers can expect gas prices to remain high over the summer, with demand continuing to reach peak levels and the prospect of a gas tax break officially withdrawn.

Some motorists on Friday grumbled at the continual uptick in prices, saying it was costing them more to fill their tank than feed their families. But other drivers acknowledged that prices reflect market demand.

The oil industry has attributed price increases to maintenance and refinery problems, with two central operations in Texas and Oklahoma not producing at capacity.
(CBC)

In Vancouver, where gasbuddy.com says drivers are paying the highest prices in the country at as much as $1.309 per litre, the city transit authority has reported an increase in use of its light rail system.

Meanwhile, Prime Minister Stephen Harper on Thursday confirmed he would not introduce a break in the gas tax, which was proposed in his 2004 election campaign.

<Here is yet another example of a politician lying to get elected. This kind of behavior should require jail time, not the privilege to run our country.

"We've seen this before. Gas prices go up and down largely in response to international market conditions," he said in Waterloo, Ont. "The long-term trend on gas prices is up. It's going to be up because in the long-term demand is outstripping supply for hydrocarbons."

The oil industry has attributed price increases to maintenance and refinery problems, with two central operations in Texas and Oklahoma not producing at capacity. Industry analysts note that refiners typically bump up their margins in the early spring, gearing up for the summer driving months.