The rollercoaster ride of gasoline prices in Toronto is on an upward trajectory again.
Motorists are paying about $1.18 per litre in Toronto, up about five cents from Friday. And according to GasBuddy.com, the average price in Canada today is about $1.27 per litre.
However, even $1.18 per litre is still substantially better than the nearly $1.40 a litre Torontonians were paying a week ago as hurricane Ike struck the Texas Gulf Coast -- a crucial area for both oil and natural gas production and gasoline refining.
Crude oil prices declined this week but then closed above US$104 per barrel on news of the U.S. federal government's proposed bailout of troubled financial institutions.
Calgary consultant Michael Ervin told CTV.ca on Friday that crude oil's price is only one factor driving the price of gasoline, which is a continental commodity.
This summer, refiners had boosted production in anticipation of increased summer demand -- which never materialized because of the U.S. economic slowdown, he said.
As a result, refiners scaled back production, which has stepped up again. That increased production has boosted inventories and allowed the price to fall, Ervin said.
