Gas prices expected to rise in New England following new tariffs

PROVIDENCE, R.I. (WLNE) — Gas prices in New England are set to increase in the coming weeks following a 10 percent tariff on gasoline and diesel imposed by President Trump on imports from Canada.

According to Patrick De Haan, Head of Petroleum Analysis at GasBuddy, Rhode Island and surrounding areas will likely see prices jump above the $3-per-gallon mark soon.

Currently, the average gas price in Providence is $2.95 per gallon, down two cents from last week.

But De Haan warned this trend will reverse due to the new tariffs.

“It’s probably something that’s gonna be happening over the next couple of day, you’ll probably start to see prices again back above the three-dollar-a-gallon mark,” said De Haan.

New England is particularly vulnerable because much of its fuel comes from a refinery in New Brunswick, Canada, which is now subject to the tariff.

“With Trump’s tariffs of 10 percent, a lot of diesel, gasoline and jet fuel that flows in from that refinery is essentially going to be taxed,” said De Haan.

“You won’t see it overnight, but over time, you’ll likely see gas prices starting to go up,” De Haan said.

De Haan estimated gas prices could rise between 20 to 40 cents per gallon in the coming weeks.

Heating oil prices may also increase.

“It’s just about a sure thing to increase,” De Haan said.

“Refineries and suppliers don’t have the room to absorb this. This is something that’s passed along to the end consumer.”

The tariffs aren’t the only factor driving gas prices up. Refinery maintenance and the seasonal switch to summer gasoline, which is required by the EPA, are also pushing prices higher.

“Typically, gas prices rise this time of year. And now, we have tariffs on top of that. So, get ready for gas prices to be going up in the next couple of weeks,” De Haan said.

With prices on the rise, De Haan recommended shopping around for the best gas prices using tools like GasBuddy, Google Maps or Waze.

“You’re always going to be able to shop smarter and, in general, save yourself 10 to 20 cents a gallon,” De Haan said.

While the tariffs just went into effect at midnight, their long-term impact depends on how long they remain in place.

If they are lifted quickly, De Haan said the effect will be minimal.

Trump has defended the tariffs, saying they are necessary to combat unfair trade deals, but economists warn that American consumers will ultimately pay the price.