Gas prices could hit $2.10/litre by May long weekend: Analysts
Posted May 9, 2022 6:38 am.
Last Updated May 9, 2022 12:43 pm.
The price of gas sits just shy of $2 a litre at most GTA stations to begin the week and the speculation is drivers will be paying significantly more by the time Victoria Day arrives.
With signs at most GTA stations showing 199.9 cents a litre on Monday morning, several analysts project another bump of five cents coming this week, and then yet another increase next week heading into the May long weekend. The increases could leave the price around $2.10 per litre for the unofficial start of summer.
Chief Petroleum Analyst at En-Pro International Roger McKnight says the current price should hold on Monday and Tuesday this week before the next expected jump.
The demand for refined gasoline has not been able to keep pace with the increased demand of North American exports going overseas, an issue exacerbated by the war in Ukraine. The demand for gasoline remains high despite the soaring consumer prices.
The GTA has seen around a 50 per cent increase in the price at the pumps in the last year. Drivers were paying around $1.33 a litre at the same time last year.
Drivers in Southern Ontario can take some solace in the fact that other parts of the country are paying even more. The average price of gas for all of Canada pushed towards the $2 per litre mark this weekend, with British Columbians feeling the most pain at the pump, shelling out an average of $2.06 per litre.
Over the weekend, Vancouver saw prices of $2.22 per litre, Victoria residents were paying $2.17 per litre, and drivers in Montreal are dealing with $2.07 per litre.
Early last month, the Ford government announced legislation to temporarily reduce gas and fuel taxes in Ontario. The province says if it is passed, pending results of the June election, the gas tax would be reduced by 5.7 cents per litre for six months beginning on July 1.
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Surging gas prices impacting local business owners
Ivan owns a food truck in downtown Toronto and says his business was already feeling the crunch when people started working from home during the COVID-19 pandemic. Now soaring gas prices are delivering another blow.
“The last couple years was the toughest time ever,” he says. “More expenses, less profits.”
He says it now costs him $100 a day in fuel costs to run his truck, a 30 to 40 per cent increase from around a year ago.
“We have no choice, have to increase the price a little bit to be able to cover it,” says Ivan.
Just last month, the City of Toronto’s municipal licensing committee passed a motion to raise the base fare of a taxi ride from $3.25 to $4.25 per trip. The recommendation from city staff came in response to the rapid rise of gas prices.
“We’re just not making a living, we’re just barely making payments for whatever we have,” says Aldo Archese, the former president of Independent Cab Owners’ Co-Operative.
City council will have the final say on the taxi fare hike during its meeting next month.The increase would then be put in place immediately, but only on a temporary basis.
In March, Uber also announced a new $0.50 surcharge for every ride. The company says the fee will also be applied to its Uber Eats app.
With files from The Canadian Press
