Motorists looking to top up their tanks might want to make a special trip to the local filling station on the way home.That’s because gas prices are heading up as much as 15 cents a litre overnight in national markets. In some areas such as Ontario and Quebec, analysts say the price of a litre of regular gasoline could be two bits higher by Victoria Day.According to the president of Canadians for Affordable Energy Dan McTeague, the average price for a litre of gas in Ontario is expected to be $1.79 in the Greater Toronto Area (GTA) and $1.88 in Quebec by this time on Thursday. .“The jump is the result of a switch over from winter to summer gasoline,” he said. “We do that every year.”Dan McTeague, Canadians for Affordable Energy.That would be the highest levels in either province since August, 2022. And it pales to the $2.13 people are already paying in West Vancouver. Prices in Calgary and Edmonton are expected to increase a more modest 4 cents to about $1.62.McTeague said it’s a seasonal switch to summer grades of gasoline. Additionally, refineries and oil sands facilities are entering spring maintenance season and annual turnarounds.“The jump is the result of a switch over from winter to summer gasoline,” he said. “We do that every year.”It’s also compounded by a big jump in the wholesale traded price in New York from around US$2.50 a gallon to about $2.83 — or about CAD$1 a litre. That’s because summer also marks the start of the peak holiday driving season in both countries..But there’s fat chance of Canadians ever paying a Loonie or less again thanks to the carbon tax, gas monitoring site gasbuddy.com said in a report. There is “virtually zero chance that gas prices will ever fall below $1 per litre again.”The report singled out the federal carbon tax, which rose to $80 a tonne earlier this month, up from $65 a tonne. That translated to a rise in gasoline prices of about 3.3 cents per litre effective April 1. In Alberta, it was compounded with the restoration of the gas tax.Even before the tax was applied, Canadians saw a 4.5% year-over-year price jump in March, according to the latest inflation numbers by Statistics Canada this week due to higher global crude oil prices arising from supply concerns amid “geopolitical conflict and continued voluntary production cuts,” StatsCan said..“What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel, which we estimate could see oil prices trade up to $100 a barrel depending on the nature of the events,”Citigroup.And oil prices are expected to remain high, notwithstanding continued geopolitical strife stemming from Russia’s war on Ukraine and tensions in the Middle East between Israel and Iran that are keeping markets on edge.Although prices fell about 3% on Wednesday, to USD$82.87 a barrel for North American West Texas Intermediate, an Israeli response to Iranian drone and missile strikes could easily push it into triple digits.“What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel, which we estimate could see oil prices trade up to $100 a barrel depending on the nature of the events,” Citigroup said in a research note.
Motorists looking to top up their tanks might want to make a special trip to the local filling station on the way home.That’s because gas prices are heading up as much as 15 cents a litre overnight in national markets. In some areas such as Ontario and Quebec, analysts say the price of a litre of regular gasoline could be two bits higher by Victoria Day.According to the president of Canadians for Affordable Energy Dan McTeague, the average price for a litre of gas in Ontario is expected to be $1.79 in the Greater Toronto Area (GTA) and $1.88 in Quebec by this time on Thursday. .“The jump is the result of a switch over from winter to summer gasoline,” he said. “We do that every year.”Dan McTeague, Canadians for Affordable Energy.That would be the highest levels in either province since August, 2022. And it pales to the $2.13 people are already paying in West Vancouver. Prices in Calgary and Edmonton are expected to increase a more modest 4 cents to about $1.62.McTeague said it’s a seasonal switch to summer grades of gasoline. Additionally, refineries and oil sands facilities are entering spring maintenance season and annual turnarounds.“The jump is the result of a switch over from winter to summer gasoline,” he said. “We do that every year.”It’s also compounded by a big jump in the wholesale traded price in New York from around US$2.50 a gallon to about $2.83 — or about CAD$1 a litre. That’s because summer also marks the start of the peak holiday driving season in both countries..But there’s fat chance of Canadians ever paying a Loonie or less again thanks to the carbon tax, gas monitoring site gasbuddy.com said in a report. There is “virtually zero chance that gas prices will ever fall below $1 per litre again.”The report singled out the federal carbon tax, which rose to $80 a tonne earlier this month, up from $65 a tonne. That translated to a rise in gasoline prices of about 3.3 cents per litre effective April 1. In Alberta, it was compounded with the restoration of the gas tax.Even before the tax was applied, Canadians saw a 4.5% year-over-year price jump in March, according to the latest inflation numbers by Statistics Canada this week due to higher global crude oil prices arising from supply concerns amid “geopolitical conflict and continued voluntary production cuts,” StatsCan said..“What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel, which we estimate could see oil prices trade up to $100 a barrel depending on the nature of the events,”Citigroup.And oil prices are expected to remain high, notwithstanding continued geopolitical strife stemming from Russia’s war on Ukraine and tensions in the Middle East between Israel and Iran that are keeping markets on edge.Although prices fell about 3% on Wednesday, to USD$82.87 a barrel for North American West Texas Intermediate, an Israeli response to Iranian drone and missile strikes could easily push it into triple digits.“What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel, which we estimate could see oil prices trade up to $100 a barrel depending on the nature of the events,” Citigroup said in a research note.
