Drivers across the Greater Toronto Area could face another sharp increase at the pumps overnight, with the average price of regular gasoline expected to rise by eight cents per litre on Wednesday.
According to CP24, Dan McTeague, president of Canadians for Affordable Energy, expects the average price of regular gasoline in the GTA to reach 177.9 cents per litre. He also warned that prices could rise by another two or three cents per litre on Thursday as instability in global oil markets continues to affect consumers.
McTeague urged GTA residents who need gas to consider filling up before the increase takes effect. Speaking to CP24, he said drivers should not wait until Wednesday or Thursday and noted that prices are often most competitive after 6 p.m.
The anticipated increase follows a brief period of relief at gas stations across the region. Gas prices in Toronto recently fell to their lowest level since April, but McTeague said the decline was unlikely to last because markets remain highly sensitive to developments involving Iran and the Strait of Hormuz.
According to CP24, McTeague said reports of a possible agreement can temporarily push fuel prices lower. However, prices can quickly rise again when negotiations stall or expectations of a resolution fade. He said global reserve supplies have been drained while disruptions continue to affect the movement of oil carrying vessels.
The Strait of Hormuz remains a major concern for global energy markets because it is an important route for oil shipments. McTeague said the disruption has affected more than gasoline supplies, with jet fuel and diesel markets also facing pressure.
McTeague also warned that replenishing emergency oil reserves could take considerable time. He told CP24 that the global market is facing a shortage of approximately 1.6 billion barrels of oil, meaning North American consumers could continue to experience sudden price swings throughout the summer.
The changing price of fuel could place additional pressure on household budgets as drivers prepare for the summer travel season. Canadians can follow the latest developments involving energy prices, inflation and the economy through Weekly Voice and the Canada news section.
