Ontario gas prices set to drop, but it may be short-lived
Ontario drivers should get a break at the pumps this weekend as the provincial government slashes its portion of the gas tax but at least one industry analyst is warning that the relief will likely be temporary.
The Ontario government is set to reduce its portion of the gas tax by 5.7 cents per litre for six months, beginning on Canada Day.
- Download our app to get local alerts to your device
- Get the latest local updates right to your inbox
Canadians for Affordable Energy President Dan McTeague tells CP24.com that the move could help push prices down by “as much as seven cents a litre” on Friday, which would bring the average cost of a litre of fuel in the GTA to 195.9 cents per litre in time for the holiday weekend.
But McTeague said that prices are likely to rise in the coming weeks.
READ MORE: This is how much more your summer road trip will cost with current gas prices
“Despite what the provincial government has done, despite the fact that after September 15 we shift from expensive summer gas to cheaper winter gasoline, the fundamentals continue to point to much higher prices at pumps, unless we see a global recession and I don't see that happening,” he said.
Colin Cote fills up a u-haul truck with gas at a Esso gas station in Toronto on Tuesday, June 15, 2021. THE CANADIAN PRESS/ Tijana Martin
“I know there's going to be interest rate hikes, they are going to make for days where the market jitters. But what we see is pretty much what we're going to get for the first couple of weeks of July and afterwards I think we're going to be marching towards $2.20 and maybe even $2.25 per litre.”
The cost of gas his risen by more than 40 per cent so far in 2022, with much of the increase being fueled by supply chain issues related to the war in Ukraine.
Looking ahead, McTeague said that he expects the price of oil to go as high as US$130 per barrel this summer, which will place continued upward pressure on gas prices.
He said that the federal government’s forthcoming Clean Fuel Standard, which will be released in July, will also “set in motion the wheels to drive prices up even higher” but probably not until next year.
The good news for drivers, at least this weekend, is there might be some cheaper gas outside the GTA.
McTeague said that many of the smaller communities outside of Toronto tend to pay three or four cents less per litre, especially on weekends.
“My advice if you're heading up to cottage country, more than likely the prices will be at or cheaper than what you're paying here in Toronto,” he said.
CTVNews.ca Top Stories
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.