Gas prices hit a record high in the GTA

GTA drivers are waking up to record-breaking prices at the pumps following another overnight increase.

Gas prices rose another two cents at midnight to an average price of 144.9 cents/litre. In the last week prices have gone up eight cents.

And it doesn’t look like prices will be going down as dramatically anytime soon.

Roger McKnight, chief petroleum analyst with En-Pro, told 680 NEWS he predicts gas prices in the GTA will drop two cents overnight, but overall analysts predict gas prices will hit $1.50 in coming weeks.

The reason behind this dramatic rise in price is an increased demand and an under supply of oil worldwide.

The price for oil is close to $80 U.S. per barrel.

“There’s actually panic buying on the market as traders gear up for the wintertime,” 680 NEWS senior business editor Mike Eppel explained.

Eppel said concern remains over where energy will be coming from this winter, as the North American system is still experiencing a supply shortage.

An energy boom on the global markets is also impacting the price at the pumps.

“In China, this declaration by the government last week to buy all types of energy sources at whatever price, that sent the global markets into a tizzy as well,” Eppel explained.

“And now there’s even talk that natural gas is getting so expensive in China that they’re thinking about shifting some of their production back to oil and coal … the market right now is a mess.”