According to a gas analyst.
Dan McTeague, president of Canadians for Affordable Energy, said gasoline prices are expected to hit record highs of 151.9 in the GTHA on Friday and 150.9 in other locations including Barrie, London, Niagara, Ottawa , St. Catharines, Waterloo and Windsor.
The increase comes after a similar jump of two hundred on Thursday. Prices are expected to rise another penny on Saturday, he said.
“We’re in new territory, uncharted territory,” McTeague told 980 CFPL’s Mike Stubbs on Thursday. This is the first time that the price of petrol has exceeded the $1.50 mark in London.
“I guess the factors behind this are many, but suffice to say this is really a preview of what lies ahead as we head towards $1.60, possibly $1.64, $1.65 first days of summer, last days of spring, depending on how you look at it.
Raw reality: New report suggests gasoline prices will continue to rise in 2022
The spike in prices at the pump comes as Ontarians are already feeling the squeeze on their wallets in other ways, such as groceries and housing. The consumer price index rose 4.8% in the last month of 2021, its highest rate of increase since 1992, Statistics Canada reported last week.
The March crude oil contract hit US$88.54 a barrel on Wednesday, a more than seven-year high, before falling 74 cents on Thursday to US$86.61.
Singh’s brother-in-law has demanded reimbursement for his $13,000 trucker convoy donation, source says
Canada has detected BA.2 cases. What we know about this Omicron sub-variant
The rising cost of crude is due in part to dwindling oil inventories and news that OPEC+ will maintain current oil production targets, according to the University of Calgary’s School of Public Policy.
“The world suddenly realizes after several months that we are running out of oil supply and producers are not coming to the rescue,” McTeague said.
“I suspect we’re going to see oil hit $100 a barrel, and that will of course be helped by the stalemate in geopolitical tensions we’re seeing between Russia and Ukraine and other parts of the world.”
McTeague predicts such an oil price would translate to an extra 14 cents a liter at the pump from where things should be on Friday.
“Then we have the federal government’s ever-increasing carbon tax, the first increasing two and a half cents a liter on April 1…then the April 15 switch from winter gasoline to gasoline summer,” he continued.
Inflation hits Canadians already struggling with groceries, with gas the hardest, experts say
The Canadian loonie’s weak performance against the US dollar isn’t helping either, he says.
“In the past, when we saw oil surging, the Canadian dollar would also strengthen against the US dollar. That’s not the case this time,” McTeague said.
The Canadian dollar was trading at 78.67 cents US on Thursday versus 79.33 cents on Wednesday.
— with files from Craig Lord and The Canadian Press
No end in sight for high gas and food prices
© 2022 Global News, a division of Corus Entertainment Inc.