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 Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.