Gas prices hit another record-high with 5-cent jump at midnight
Posted May 13, 2022 9:07 am.
Last Updated May 14, 2022 11:15 am.
For the first time ever drivers are paying more than $2 for a litre of gas across the GTA.
The price at the pumps reached new heights Saturday morning, up to $2.029 per litre following a five cent increase at midnight, and is expected to spike another 6 cents on Sunday.
Some experts believe the increases could leave the price around $2.10 per litre by the Victoria Day long weekend.
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 rising demand can also be attributed to the reopening of the economy following two years of the COVID-19 pandemic.
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The latest calculations on American refinery output are at levels not seen since 2014, leading to supply shortages for diesel fuel and an all-time record high on Friday morning for the wholesale unleaded gasoline price in New York.
Saturday’s jump at the pumps does not even include the recent run-up in market prices. The price of U.S. crude oil rose 4.1% to settle at $110.49 per barrel on Friday – up about 50% for the year.
Earlier this week, Natural Resources Canada pegged the average price across the country for regular gasoline at an all-time high of $1.974/litre. That price was up more than 12 cents from a week ago.
Prices averaged about $2.23/litre in Vancouver,
The GTA’s previous record price of $1.99/litre was reached on Monday before prices slightly dipped in the last couple of days.
What Ontario party leaders are promising to deal with high gas prices
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.
The Liberals say they will offer rebates of up to $8,000 for electric vehicles up to retail prices of $65,000 while also incentivizing people to take public transit by slashing all transit fares across the province to $1 per ride until January 2024.
The NDP tabled a bill in March that would require the Ontario Energy Board to regulate the retail price and wholesale mark-up of petroleum products in Ontario.
With files from CityNews senior business editor Mike Eppel and The Canadian Press
