Drivers in the Greater Toronto Area should prepare for higher fuel costs as gas prices are expected to surge to nearly $2 per litre on Wednesday. According to fuel prediction website Gas Wizard, the price of regular gasoline will rise to 195.9 cents per litre, an increase of seven cents compared to Tuesday. For those who use premium fuel, the average cost will approach $2.26 per litre.
Reasons Behind the Price Hike
Dan McTeague, president of Canadians for Affordable Energy, stated that gas prices are "set to resume their upward trek" this week. The former Liberal Member of Parliament noted that Eastern Canada will see an average increase of eight cents per litre, while Western Canada will experience a five-cent jump. Diesel prices are also expected to rise, averaging nearly $2.10 per litre on Wednesday.
McTeague told Newstalk 1010 on Tuesday that "we're knocking on the $2-litre door." This surge is attributed to several factors, including the ongoing conflict in Iran that began in late February, involving the United States and Israel. The closure of the Strait of Hormuz, a critical shipping route for oil tankers in the Middle East, has created uncertainty in energy markets. According to McTeague, even if the strait reopens, it will not immediately address a 1.2 billion barrel oil deficit in the short term.
Seasonal and Historical Context
Gas prices have not reached these levels since May 2022, following COVID-19-related supply chain disruptions and increased demand. The current rise is also driven by higher demand during warmer months and the switch to more expensive summer fuel blends. Statistics Canada data confirms that prices last peaked in May 2022.
Drivers are advised to fill up before Wednesday to avoid the higher costs. The price increase is expected to impact household budgets, with many Canadians already limiting or cancelling road trips due to high fuel costs. Inflation recently jumped to 2.4% in March, driven by the Iran war oil shock, according to Statistics Canada.
