Gas prices will skyrocket in Ontario before summer
Published March 19, 2024 at 12:23 pm
Drivers may have noticed they are paying more at pumps this week but gas prices are set to soar even higher before summer in Ontario, according to industry experts.
The prices jumped from around 148 cents a litre early last week (March 11) to 159.9 cents today (March 20), according to Gas Wizard.
Prices could increase by 20 cents between now and the May long weekend, Canadians for Affordable Energy President Dan McTeague told news outlets.
The increase is due to a few factors.
The cost of oil is increasing, which could mean a 10-cent increase in gas, McTeague told news outlets.
Also, refineries aren’t keeping up with demand, Roger McKnight, chief petroleum analyst with energy cost and price specialist En-Pro, said in a blog post this month.
Videos
“Refinery runs are stuck in first gear while demand for gasoline and diesel is moving into third gear as we get closer to the summer driving season,” McKnight noted.
There is also the federal carbon tax coming on April 1.
The carbon pricing plan is set to increase from $65 a tonne to $80 a tonne on April 1, which will add about three cents to the cost of gas, experts predict.
McKnight also said the switchover to the summer gas formulation is behind the increase this week in southern Ontario.
Refiners are mandated in certain areas of the U.S. to adjust formulations as gasoline tends to evaporate with higher temperatures, according to McKnight’s blog. This results in higher greenhouse gas emissions and smog. This process is more costly so the increase is passed on to the pumps.
There may be unpredictable factors such as weather events that could also cause prices to fluctuate.
For more on gas price history and predictions, see Gas Wizard here.
Lead photo: Ekaterina Belinskaya
INsauga's Editorial Standards and Policies