PROVIDENCE, R.I. (WLNE) — Gas prices in New England are expected to climb in the coming weeks following a 10 percent tariff imposed by President Trump on gasoline and diesel imports from Canada. This new policy could cause a noticeable increase in prices at the pump for drivers in Rhode Island and surrounding areas.
As of now, the average gas price in Providence is sitting at $2.95 per gallon, which represents a slight decrease of two cents from the previous week. However, experts predict that this trend will be short-lived as the effects of the tariffs take hold.
What the New Tariffs Mean for Gas Prices
Patrick De Haan, Head of Petroleum Analysis at GasBuddy, warned that gas prices in New England will likely see an upward spike due to the 10 percent tariff on fuel imports from Canada. While the impact won’t be immediate, De Haan estimates that gas prices could rise by as much as 20 to 40 cents per gallon over the next few weeks.
“You’ll probably start to see prices go back above the $3-per-gallon mark soon,” said De Haan. “It’s something that’s going to happen over the next couple of days.” The main reason for this hike is the tariff on gasoline, diesel, and jet fuel imported from a refinery located in New Brunswick, Canada, which supplies a significant portion of New England’s fuel.
New England is particularly vulnerable to price hikes because much of the region’s gasoline and diesel comes from this Canadian refinery. The 10 percent tariff imposed by Trump is essentially a tax on these imported fuels, meaning that refineries and fuel suppliers won’t be able to absorb the extra costs. Instead, they will pass these costs along to consumers, causing gas prices to rise.
The Broader Impact: Heating Oil and Refinery Maintenance
While gas prices are set to rise in the wake of the new tariffs, heating oil prices are also expected to see an increase. “It’s just about a sure thing to increase,” De Haan said, adding that the cost of heating oil will likely follow the same upward trend as gasoline due to the same refineries supplying both products.
In addition to the tariffs, refinery maintenance and the seasonal shift to summer gasoline — a special blend of fuel required by the Environmental Protection Agency (EPA) — are contributing factors to the price increases. Gas prices traditionally rise at this time of year due to the switch in fuel composition, which is more expensive to produce.
De Haan explained, “Refineries and suppliers don’t have the room to absorb this. This is something that’s passed along to the end consumer.”
With the combination of these factors — the 10 percent tariff, refinery maintenance, and the seasonal fuel changes — De Haan emphasized that drivers should be prepared for rising prices in the next couple of weeks. “Typically, gas prices rise this time of year. And now, we have tariffs on top of that,” he said.
The Role of Tariffs in Gas Price Increases
President Trump has defended the imposition of tariffs, arguing that they are necessary to combat unfair trade deals and promote American interests. He maintains that the tariffs will lead to fairer trade terms with Canada and other nations, ultimately benefiting the U.S. economy in the long run.
However, while the president supports these tariffs, economists warn that the tariffs could hurt American consumers by increasing the cost of everyday goods — including gasoline. The additional burden on consumers could lead to higher living costs for many Americans, particularly in states like New England, which are highly reliant on imported fuels.
Short-Term Impact vs. Long-Term Effects
The immediate effect of the tariffs is clear: gas prices will rise. The question is how long these tariffs will remain in place and whether they will continue to have a significant impact on prices in the long term. If the tariffs are lifted quickly, De Haan said that the increase in gas prices may be temporary. However, if the tariffs remain in effect for an extended period, the long-term impact could lead to sustained price hikes.
While the tariffs are just now going into effect, their future is uncertain. The economic fallout could depend on whether President Trump chooses to continue or revise the tariffs based on ongoing trade negotiations. For now, De Haan recommends that consumers keep an eye on their local gas prices and use tools like GasBuddy, Google Maps, or Waze to find the best prices at the pump.
“You’re always going to be able to shop smarter and, in general, save yourself 10 to 20 cents a gallon,” said De Haan.
Gas Prices: A Growing Concern for Consumers
As gas prices are expected to rise, the concern over higher fuel costs could have a ripple effect throughout the economy. Higher prices at the pump may result in consumers spending more on gas, which could reduce the amount of disposable income available for other goods and services. For those in New England, especially, the combination of the tariffs, rising fuel prices, and seasonal changes in gasoline production may present a challenging few months ahead.
Economists have warned that consumers will feel the weight of these increases in the form of higher fuel costs, which can have a disproportionate impact on working-class families. Increased heating oil prices may further exacerbate this situation, especially as colder months approach. For now, many residents of New England are bracing for what may be another difficult period of high gas prices.
What Can Consumers Do?
For drivers, the best advice right now is to plan ahead and shop around for the best deals. With prices expected to rise, it’s a good idea to monitor gas prices regularly and take advantage of discounts or deals where possible. Many apps and websites allow consumers to compare prices in real time, helping them find the best prices in their area. It’s also wise to take precautions to reduce fuel consumption, such as driving more efficiently and keeping cars well-maintained.
In the end, while the tariffs may play a significant role in the rise of gas prices, the overall economic landscape is shaped by a variety of factors. The coming weeks will likely provide more clarity on the long-term effects of the tariffs and the broader economic impact on consumers.
Disclaimer – Our editorial team has thoroughly fact-checked this article to ensure its accuracy and eliminate any potential misinformation. We are dedicated to upholding the highest standards of integrity in our content.