Yellowknife (May 07/04) - Gas prices in Yellowknife, already among the highest in the country, could soon top $1 per litre, says an oil industry analyst.

"Like other markets across Canada, consumers in the North will feel the effects of the rising cost of fuel on the global market," said Michael Ervin, president of Calgary-based MJ Ervin and Associates.

"By mid-summer it might climb to a little over a dollar per litre," he said.

Prices of crude oil closed at a 13-year high Tuesday afternoon, thanks in part to an upsurge of fighting in Iraq and the recent bombing of an oil refinery in Saudi Arabia.

Ervin said while the price in Yellowknife -- currently hovering around 93 cents per litre -- hasn't gone up, it's only a matter of time.

"Northern cities, like Yellowknife and Whitehorse, are somewhat immune to price increases in the short term, but eventually they will go up," said Ervin.

But a spokesperson for Shell Canada said while prices across the country are rising, the same might not necessarily hold true for Yellowknife.

"There are several factors that play a role determining the price of gas, so we can't predict what will happen," said Denita Davis, with Shell's public affairs department.

Many southern cities, including Edmonton, have already begun to feel the effects of rising costs.

Prices in the Alberta capital have reached record highs, ringing the bell at just over 82 cents per litre in some parts of the city.

The good news for consumers, said Ervin, is that the cost of crude oil isn't likely to rise far above current levels.