Gas prices set to hit three-month high on Saturday. What one expert thinks will happen next

The average price of a litre of gasoline is set to reach a three-month high on Saturday but at least one industry analyst says that the recent pace of increases can’t last forever.

Gas prices across most of southern Ontario rose three cents per litre overnight and are now set to go up another four cents at midnight.

That will bring the average cost of a litre of regular to 180.9 cents per litre, which is the highest it has been since July 28.

However, Canadians for Affordable Energy President Dan McTeague tells CP24 that there could be some modest relief for drivers later this weekend.

“It has been a rather sudden and dramatic increase, about 20 cents per litre over the last three or four working days. But what I am sensing though is this may be a bit too quick and a bit too easily passed on increases in both oil and of course gasoline and diesel prices,” he said. “So I don’t think this going to continue, you know four or five cents every single day. And on Sunday we might get a little break, maybe a two or three cent per litre drop.”

Gas prices surged earlier this summer amid concerns over the war in Ukraine and at one point topped $2 a litre for a period of time.

They dropped as low as 143.9 cents per litre in September amid fears of a global recession but have been climbing again in recent weeks.

“It’s impossible to predict more than a couple days (out) simply because the market is so volatile right now,” McTeague told CP24 on Friday. “There's so many moving parts, most importantly concern about the global economy and demand destruction, which these high prices bring about. But competing against that reality there just isn't enough oil products out there, particularly heating oil where we may be looking at a scenario especially in eastern parts of the United States and Atlantic Canada where furnace oil may actually be rationed.”

In addition to supply chain issues related to the war in Ukraine, McTeague said that a “weak Canadian dollar” could put further pressure on gas prices domestically.

A six cent reduction in the Ontario portion of the gas tax is also set to expire at the end of December.

So far the Ford government hasn’t said whether it would consider extending the time-limited measure.