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
Live updates: What star witness in Trump hush money case has said on the stand so far
The star prosecution witness in Donald Trump's hush money trial took the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
Steve Buscemi punched in the face while walking in N.Y.C.
Hollywood actor Steve Buscemi has been treated for injuries after being punched in the face while walking in New York City.
'Be very, very careful': Wildfire conditions 'still extreme,' says Alberta fire chief
As wildfire conditions remain 'extreme' in northern Alberta, residents are being urged to be extra cautious and follow a fire ban.
Wildfire smoke drifts across Canada, over parts of U.S., prompting air quality advisories
Air quality advisories are in effect across Western Canada as smoky conditions plague some areas, according to the latest forecasts. Here's where.
Canucks' Zadorov fined $5,000 for post-game crosscheck on Oilers' McDavid
A Vancouver Canucks defenceman has been given the highest possible fine under the NHL's collective bargaining agreement after a scrum broke out at the end of Game 3 against the Edmonton Oilers Sunday night.
City of Ottawa negligent in allowing Uber to operate outside of taxi bylaw, judge rules
An Ontario Superior Court judge has ruled that the City of Ottawa was negligent in its enforcement of the city's taxi bylaw when it allowed Uber to begin operating in 2014, harming the city's established taxi industry.
Jerry Seinfeld speech prompts pro-Palestinian demonstration at U.S. university graduation ceremony
A tiny contingent of Duke University graduates opposed pro-Israel comedian Jerry Seinfeld speaking at their commencement in North Carolina Sunday, with about 30 of the 7,000 students leaving their seats and chanting "free Palestine" amid a mix of boos and cheers.
Just how bad are ultraprocessed foods? Here are 5 things to know
Many foods fall under the category of ultraprocessed foods, depending on their exact ingredients. This type of food has been studied a lot lately, and the results aren’t great.