As was expected, gas prices jumped Thursday morning to just under $1.37, which is close to the highest level in more than a year.
The price hit 136.8 cents per litre Thursday. Some analysts believe this spike is the beginning of a run on gas prices that could see drivers paying $1.45 a litre by the end of April.
“The price … should drop two-tenths of a cent, it shouldn’t be going up 2.8 cents a litre,” Roger McKnight, a senior petroleum analyst for En-Pro, said.
The United States government announced Wednesday that crude oil supplies grew by 2.1 per cent last week. Gasoline supplies dropped by 1.6 per cent to 223.4 million barrels — that’s nearly three per cent above the level a year ago. Demand for gas has dropped by 6.1 per cent from last year.
“What we pay at the pumps is really determined by the price of wholesale gasoline that’s set every day in New York. The last two days wholesale gas has dropped. Oil was down nearly $2 yesterday, yet the price at the pump is going up,” 680News business editor Richard Southern said.
“There’s really little question about it — we’re getting gouged here by the oil companies.”
Back in 2005, Torontonians were paying $1.04 for gas, in 2010 the highest price rose to $1.12 and in May 2011 the pump price spiked at 139.6 cents per litre.
“I think the government has to step in and do something about this,” a driver named Stan said Thursday while filling up. “It’s not reasonable. It doesn’t make sense.”