
According to Tom Klouza, the world head of energy analysis for OPIS, President Donald Trump’s new revenue on petrol prices will be limited.
The reason is that tariff on Canada’s energy products is only 10 %, not completely 25 % on other Canadian imports. Another factor is the time of the year. Due to weak demand, gas prices usually decrease for the year in February.
But if the revenue remains in place during the summer, its effect will increase.
“This is inflation, but not as much inflation as it will take place in April, May or June,” Kloza told CNN.
Kloza said the effect would not be felt evenly across the country as most Canadian oils are shipped to midwest refineries via pipeline. These states are likely to be most affected by Adho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Ohio, North Dakota, South Dakota, Pennsylvania and Wisconsin.
“Interestingly, from February 12, an average of a gallon of retail petrol from these 16 states is less than $ 3,” Klouza said. “It may not be able to run.”