Ontario Braces for Soaring Gas Prices Ahead of Summer Season

Motorists may have observed a recent uptick in fuel costs at gas stations this week, but brace for steeper hikes ahead of summer in Ontario, as predicted by industry analysts.

Gas prices surged from approximately 148 cents per litre at the onset of last week (March 11) to 159.9 cents as of today (March 20), as reported by Gas Wizard.

According to Dan McTeague, President of Canadians for Affordable Energy, prices could surge by an additional 20 cents leading up to the May long weekend, as conveyed to news sources.

Several factors contribute to this impending increase.

According to McTeague, rising oil prices could lead to a 10-cent uptick in gas prices, as reported by news outlets.

Additionally, Roger McKnight, chief petroleum analyst at En-Pro, noted in a recent blog post that refineries are struggling to meet demand this month.

Adding to the mix is the impending federal carbon tax set to take effect on April 1. The carbon pricing scheme is slated to rise from $65 to $80 per tonne, translating to an estimated three-cent increase in gas prices, according to experts.

McKnight highlighted another contributing factor: the transition to summer gas formulations, which is driving up prices in southern Ontario this week. This adjustment, mandated in certain U.S. regions to counteract gasoline evaporation in warmer temperatures, incurs higher costs for refiners, ultimately reflected at the pumps.

Moreover, unforeseeable variables like weather events may further sway price fluctuations.