HomeBusinessRecord gas prices: expect more hikes, expert says

Record gas prices: expect more hikes, expert says

The price of gasoline jumped to at least $2.15 per litre in some parts of Canada on Sunday, up three cents from Saturday, according to the Canadian Automobile Association (CAA).

“Gas prices will continue to rise in the upcoming months, and it’s going to hit all the provinces in Canada,” Dan McTeague, president of Canadians for Affordable Energy, told CTV News on Saturday.

He predicted that Sunday would see a price hike in the Greater Toronto Area (GTA) and most of southern Ontario, pointing out that the last record high was just on May 18, when prices hit $2 per litre.

The average price for gas in Ontario on Sunday was about 209.6 cents or $2.09 per litre, up three cents from yesterday’s average of 206.6 cents or $2.06 per litre, according to the CAA.

Last year’s average on this day was 129 cents or $1.29 per litre.

According to Gas Wizard, which is run by McTeague, the price of regular gas in Edmonton and Calgary remained the same as Saturday at $1.87 and $1.89 per litre on Sunday, respectively.

The highest per-litre rate seen so far is in Vancouver, with yesterday’s average hitting $2.29 per litre. Prices dipped slightly on Sunday with the new average coming up to $2.26 per litre.

The current price hike comes after months of soaring petrol prices in the GTA, owing to a fuel supply scarcity, along with a tightening of the global supply of energy, exacerbated by sanctions imposed on Russia for its invasion of Ukraine.

Last year, Russia accounted for 14 per cent of the global oil supply, according to the International Energy Agency (IEA), and the West’s sanctions on Russia could be creating a significant gap in the market without a sufficient alternative in place.

Other factors such as post-pandemic demand along with the arrival of summer are leading to price hikes as people venture outdoors, McTeague says.

Doug Ford’s Progressive Conservatives – who won a majority government for a second term – promised during their campaign trail that they would temporarily reduce the gas tax in Ontario by 5.7 cents per litre for six months starting July 1, but McTeague isn’t optimistic for more than temporary relief.

“I would not be surprised if prices in Ontario reach up to $2.25 in the coming summer months,” he said.

With files from CTVNews.ca Writer Michael Lee



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