Study looks into whether gas prices rise during holiday weekends
Gas prices may rise just before holidays, but according to a recent study, the price hike is a function of wholesale prices, not greed as some may suspect.
MJ Ervin and Associates, a petroleum consultancy firm, determined this after analyzing Canadian prices just before holiday weekends. The firm then compared these prices with what it cost on regular weekends.
While the study found prices tend to rise in the spring, the data indicates the increases result from higher demand and lower supply because more Canadians hit the roads at that time of year.
"We generally observe rising pump prices in the spring and declining pump prices in the fall, even when crude oil prices may be exhibiting different trends," said Michael Ervin, Vice-President and Director of Consulting Services at the firm. "If pump prices do change before a holiday, it is almost always indicative of a general trend in wholesale prices."
Whatever the reason, some Canadians may be altering their travel plans to avoid high gas prices. If they continue to dial back the number of miles they travel, policyholders may even be able to reduce their auto insurance premiums.