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
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.