The average cost of a liter of gasoline in the greater Toronto area rose two cents overnight to 212.9 cents per liter and is expected to rise another three cents to 215.9 cents per liter at midnight. This, in turn, will overshadow the all-time record of 214.9 cents per liter set just last weekend.
Dan McTeague, president of the Canadians for Affordable Energy, told CP24 that he also expects gas prices to rise another penny or two on Sunday, possibly pushing the price of a liter of fuel up to 217.9 cents a liter by end of the weekend.
He said the continued rise in prices was mainly due to the ongoing war in Ukraine, but was exacerbated by the weak Canadian dollar.
“The idea that the Canadian dollar continues to show weakness, a significant weakness in the face of higher demand and higher oil prices, is something we have never experienced,” he said. “Certainly for the last 30 years in Canada, oil prices have risen and so has the value of the dollar. But right now we need about 127 pence and we have lost about two and a half percent of the value of the Canadian dollar. That adds almost three cents a liter to the price of gasoline. “
The price of gasoline has risen by about 64 percent in the last 12 months and McTeague said he expects pump pain to continue in the near future, with a price of 225 cents per liter likely this summer.
He said the Ford government’s commitment to reduce its share of the gas tax by 5.7 cents per liter and the fuel tax – which includes diesel – by 5.3 cents per liter for six months from July 1 “It will help a little.”
But at this point he said that what is needed is the intervention of the federal government.
“I believe that the federal government is now obliged to offer some relief because it is not just about energy prices, but is now spreading to other sectors,” he said. “I do not think you will find many Canadians arguing that it is time for the federal government to take this energy issue seriously, which is now leading to an inflationary crisis.”
