May see temporary spike in gasoline prices if people rush to fill their tanks
TORONTO—The flooding in Alberta may impact many sectors of the economy, but consumers shouldn’t worry about gas price spikes just yet.
CIBC economist Peter Buchanan says any significant problems would be a result of flooding at refineries, and would depend on the extent of any disruption.
Gasoline may see a temporary spike if people rush to fill their tanks because they’re worried about supplies running low, or if consumption increases with the use of water vehicles involved in rescue operations.
But he says most observers are still trying to get a handle on the impact of such sudden and extreme events.
The sectors most likely to be hit will be tourism—as travellers opt to stay away from the area altogether—as well as agriculture.
And the construction industry will predictably see a boom as the city begins to recover.