Extreme weather blamed, but some analysts say Canada lacks refinery capacity
Motorists are pulling up at some Toronto-area gas stations to find that the pumps are dry.
The oil companies that supply fuel in the area have said it’s a temporary situation, caused by extreme winter weather and a power outage.
But Natural Resources Canada says southern Ontario and other parts of Canada may face frequent gasoline shortages in the future, as nearby refineries are already operating at capacity.
Without new refining capacity “supply interruptions could become more frequent and increasingly difficult to manage,” the government agency says in an online report.
Canadians increased their consumption of gasoline by two per cent or 800 million litres in the first nine months of 2014, to 38 billion litres.
“Petroleum companies are suggesting this is logistics. I sense there’s product issue somewhere as the weather is not likely to have contributed to this shortfall, which covers the entire Golden Horseshoe,” said Dan McTeague, with GasBuddy.ca, which tracks the price of gasoline.
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