Gas Prices Expected to Jump Tonight
The price of gasoline is expected to rise in the GTA tonight by six cents/litre, according to gas price analyst Dan McTeague from gasbuddy.com.
Brampton and Mississauga can expect the same price jump that’s been projected for Toronto, from 115.9 cents/litre to just over 121.9 cents/litre (location dependent).
While some of this margin can be attributed to covering retailers' costs of running gas stations, McTeague explained that the federal government requires refineries to reformulate their gasoline for the summer.
"This is so that the gasoline doesn't become too volatile under warmer temperatures," he said.
Part of the reason the cost of gas must increase is to supplement production in the shift from winter-blend to summer-blend gasoline.
"It's also a bit of supply and demand," added McTeague.
McTeague explained that seasonal factors must also be taken into consideration, since more fuel is used in the summer for leisure like road trips or boating. The demand for gas increases in Canada for the summer.
Summer-blend gasoline stays in effect until around September 15, when winter-blend gasoline is formulated, since there is less concern for gas volatility in colder temperatures.