Gas Up A Penny Again By Thursday
Posted May 21, 2008 12:00 pm.
This article is more than 5 years old.
It’s not the kind of record you want to see set, and perhaps the most frightening part is that records are made to be broken. The cost of crude escalated to another record high on world markets Wednesday, soaring past the $133 a barrel mark for the first time in history.
What does that mean to you? Yet another jump at the pump. The cost of a fill-up soared by a penny overnight, and now sits at a staggering $1.26 a litre for regular. That’s as close as we’ve ever come to matching the $1.28.6 cents a squirt we were paying in September 2005, after the devastation caused by Hurricane Katrina and we could get even closer still with Thursday expected to bring another boost of about a cent and a half to $127.6.
And if things continue on this track, there are signs that record will shatter soon, too.
What’s driving this latest oil geyser? Gas watchdog Dan McTeague, whose website promises a 6-hour warning about fuel hikes , puts the blame on speculators taking advantage of a volatile market. And he says we’re lucky. Montreal motorists are now forking over a wallet-busting $1.38.8 per litre for those unlucky enough to be running on empty.
A weak U.S. dollar has investors pouring money into what’s commonly seen as a sure thing, and that makes oil less expensive to buy. The more who do, the higher the price goes.
But there are also other factors at work. There are concerns about gas supplies as North America heads into the traditional peak demand summer driving season. And OPEC has already confirmed it has no plans to increase production before its next meeting – and that won’t come until September 9th.
And then there’s fuel-hungry China, still reeling from the earthquake that hit just over a week ago, leaving thousands dead. It’s lapping up diesel like never before, as some power plants run short of coal and areas in the quake ravaged regions use the commodity to run temporary generators for power.
And its voracious need for fuel ahead of the Olympics is also seen as a crude awakening for oil prices.
“Major Chinese petrochemical companies are really struggling to keep up with demand,” points out industry analyst Mark Pervan. “The trend is that we’re going to continue to see pretty strong crude imports (from China) going forward. That’s what the market is really getting on board.”
All of which is having an enormous impact on the economy. The constant hikes are raising everything expect your paycheque, including food prices at supermarkets. Almost every shopper has seen the hikes on store shelves and they’re likely to continue, as oil puts pressure on buying power.
Higher gasoline prices and fewer car-dealer sales incentives initially jump-started Canada’s inflation rate in April, as the price of goods and services was 1.7 per cent higher than a year earlier and that was up from a year-over-year increase of 1.4 per cent in March.
And talk about inflation – federal government figures confirm average gas prices in Toronto have soared 15 per cent since April 1st, when we were paying what we thought was an expensive $1.06.5 a litre. Gas hasn’t been below the loonie-a-litre level since February 5th – when it was 99.5 cents.
But the rise in gas prices has also made its mark on Ontario’s floundering tourist industry, which was the hot topic at Queen’s Park Wednesday where provincial PC leader John Tory called on Premier Dalton McGuinty to halt the Retail Sales Tax on hotels and attractions in the hopes of boosting the number of visitors to Ontario and perhaps more importantly, those that already live in the province.
“Ontario families deserve some relief,” said Tory. “Removing the RST on hotels and attractions will ease the burden on taxpayers looking to have some fun this summer, it will stimulate Ontario tourism and help to boost our economy.”
Under the proposal a family visiting Toronto for a long weekend would save about $100, according to PC Tourism Critic Ted Arnott.
“The rising cost of fuel, airplane ticket surcharges and tighter restrictions at the border are making it harder for families to travel and as a result, Ontario’s tourism industry is suffering,” added Arnott. “Our plan will give visitors affordable options and allow them to enjoy all that Ontario has to offer.”
But either way, the price of gas is likely to continue heading north, even if fewer tourists from the U.S. do the same.
And the way things are going, Wednesday’s high may be a bench mark we’ll look at in the coming weeks or months and refer to as the ‘good old days.’
Like a roller coaster ride, gas prices have been going up and down – but mostly up. It’s been that way for the past ten years. Here’s a look back at the average retail price for a litre of regular unleaded gas in Toronto, tax included.
1998
January 50.4
February 51.6
March 50.1
April 50.9
May 52.4
June 51.1
July 51.3
August 50.3
September 51.8
October 51.6
November 51.9
December 48.3
1999
January 49.1
February 49.4
March 51.8
April 55.8
May 55.1
June 54.0
July 57.5
August 61.9
September 62.2
October 60.8
November 64.1
December 63.3
2000
January 64.8
February 67.9
March 72.4
April 67.1
May 71.8
June 76.6
July 71.0
August 68.7
September 74.3
October 72.8
November 73.7
December 68.4
2001
January 68.2
February 66.9
March 65.6
April 75.9
May 78.5
June 69.2
July 62.4
August 66.4
September 68.5
October 62.6
November 60.1
December 57.2
2002
January 57.4
February 58.5
March 66.2
April 68.3
May 65.3
June 67.5
July 68.3
August 70.4
September 71.1
October 73.0
November 70.7
December 71.1
2003
January 75.7
February 80.9
March 78.3
April 71.0
May 65.4
June 68.0
July 68.3
August 75.9
September 72.9
October 68.4
November 69.1
December 68.5
2004
January 74.9
February 76.6
March 71.7
April 74.0
May 85.2
June 81.7
July 80.5
August 79.3
September 81.3
October 83.5
November 78.4
December 72.7
2005
January 78.4
February 79.5
March 84.7
April 88.3
May 84.7
June 88.6
July 90.1
August 98.4
September 110.0
October 97.3
November 86.6
December 91.6
2006
January 95.4
February 85.8
March 93.3
April 102.7
May 99.5
June 102.9
July 106.6
August 99.4
September 85.1
October 84.2
November 85.6
December 88.2
2007
January 81.0
February 89.3
March 101.5
April 101.7
May 106.6
June 102.9
July 100.1
August 95.5
September 96.7
October 95.4
November 102.2
December 100.4
2008
January 102.5
February 103.2
March 106.3
April 115.0
