Gas prices approach $2 mark in GTA on Sunday
Posted May 7, 2022 9:39 am.
Last Updated May 8, 2022 12:11 pm.
Gas prices fell just short of reaching another historic milestone on Sunday.
The price at the pumps rose 3 cents overnight to 199.9 cents a litre at most GTA stations.
The price was anticipated to eclipse the $2 mark for the first time ever, however, according to Roger McKnight, chief petroleum analyst at En-Pro International, Esso chose a lower retailer margin. The price is expected to remain unchanged at least until Wednesday.
The price of gas has increased a total 12 cents since the beginning of May. Last year at this time, the price of a litre of gas across the GTA reached a high of $1.33.
“It’s two sides of the Atlantic,” says McKnight, pointing to several factors for what appears to be a never-ending increase at the pumps. “On our side we have a severe problem of supply and demand. There’s a high demand for gasoline and all refined products, that’s diesel and jet fuel as well.”
“Basically gasoline prices, in my opinion, are being driven by diesel prices. Diesel is in extremely short supply, especially in the U.S. northeast which translates into southern Ontario which translates into right across the country.”
In Vancouver, the price of regular gasoline reached $2.17 on Friday while in Montreal motorists were paying $2.03 for a litre of gas.
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The price of oil is being driven up by the war in Ukraine, pandemic-related supply chain issues and surging demand as pandemic lockdowns ease. Imperial Oil reported first quarter profits of $1.17 billion, its best first quarter in 30 years.
Brent crude, a benchmark for global oil prices, averaged $102.23 a barrel during the first quarter, 67% higher than during the same period last year.
McKnight says he doesn’t see any relief from record prices in the near future.
“Not unless one government level or another government level starts lowering taxes but that, as we all know, is a temporary reprieve and it doesn’t really solve the problem.”
Last month, the Ford government tabled legislation to cut the gas tax by nearly six cents a litre in Ontario. However, that cut won’t take effect until July 1. The NDP have promised to “regulate gas prices” if elected next month while the Liberals and Greens would offer rebates and incentives for electric vehicles and e-bikes.
“The only way you’re going to get prices down is if you stop buying the stuff,” said McKnight.
Visit CityNews for daily updates on gas prices across the GTA
Files from The Associated Press were used in this report
