Gas prices reach record high, break $1.40 mark
Posted May 10, 2011 11:54 pm.
This article is more than 5 years old.
TORONTO, On. – A year ago, the price at the pumps in Southern and Eastern Ontario was about 0.96 cents a litre. Wednesday, gas prices are expected to hit a record high of 141.1 cents per litre at the pumps after prices rose a total of eight cents a litre in two days across the GTA.
But Ontario isn’t suffering alone.
According to Tomorrow’s Gas Price Today, in Montreal gas has reached 144.9 cents after a nickel-per-litre increase and 144.1 cents in Vancouver after a 4.6 cents per litre increase.
However, the cost for crude oil dropped Tuesday morning, showing that the prices for oil and whole sale gasoline have headed in opposite directions.
“It’s actually not necessarily the case that oil and whole sale gasoline trade in lock step with one another. Case and point this morning,” 680News senior business editor Mike Eppel said.
U.S. crude dropped 1.5 per cents, Tuesday, well below its all-time record high, while whole sale gas – which is traded separately in New York and is based on refinery issues within the system – is close to it’s all-time record high.
On Tuesday, prices at the pumps approached its recent high for the year, as well came close to its 2008 high at $3.60 per gallon, with another jump expected Wednesday.
Whether or not there is any relief on the way will be based on a number of factors.
Damage from flooding conditions in Louisiana and Mississippi could affect the refineries, along with pipe line outages and the summer time driving season – boosting demand for gasoline and supply shortages.
