Refineries see profits soar with high gas prices, low oil costs

The low price of oil and relatively high price of gasoline this year hasn't been great for producers or consumers, but it has been a windfall for refineries in the region.

Refineries have been reporting significant increases in profit this year.

Phillips 66 owns the second-largest refinery in the northeast after Irving Oil Ltd.'s refinery in Saint John.

Last week the company announced to investors its worldwide refinery profits are up 64 per cent in 2015.

Tim Taylor, the president of Phillips 66, said profits are being fuelled by the high demand for gasoline

Gasoline prices in New Brunswick this summer have been stuck well above 110 cents per litre. The last time the Energy and Utilities Board set the regulated maximum price of gas below 110 cents per litre was the first week of April.

Five years ago when oil prices were identical to where they are now, pump prices were below $1 a litre.

Valero Oil. which operates the third largest refinery in the east, said its profits are also up substantially.

Gary Simmons, the company's vice-president, said Valero's profits are also credited to the low oil, high gas market.

"Really diesel margins are about where they've been historically," he said.

"It's mainly the strength in gasoline and it's been a very pleasant surprise."

Meanwhile, Irving Oil isn't saying how well it is doing financially.

But, Irving Oil operates in the same markets as Phillips 66 and Valero and their results have been spectacular.