Gas prices will hit a new record high in the GTA for the second weekend in a row and an industry analyst told CP24 that he believes the federal government now has a “duty to lighten up” on the bombs.
The average cost of a liter of gasoline in the Greater Toronto Area increased by two cents per night to 212.9 cents per liter and is expected to increase by another three cents to 215.9 cents per liter at midnight. . This, in turn, will overshadow the historic record of 214.9 cents per liter set last weekend.
Dan McTeague, president of Canadians for Affordable Energy, tells CP24 that he also expects gas prices to rise by one or two cents on Sunday, which could raise the price of a liter of fuel to 217.9 cents per liter. at the end of the weekend. .
He said that the sustained rise in prices is being driven mainly by the ongoing war in Ukraine, but that it is being exacerbated by a weak Canadian dollar.
“The idea that the Canadian dollar continues to show weakness, a significant weakness in the face of rising demand and rising oil prices is something we have never experienced,” he said. “Certainly in the last 30 years in Canada, oil prices have gone up and so has the value of the dollar. But right now it takes about 127 cents and we have lost about two and a half per cent of the value of the Canadian dollar. That adds up to almost three cents a liter to the price of gasoline. “
Gasoline prices have risen about 64 percent over the past 12 months, and McTeague said he expects the pain in the pumps to continue in the foreseeable future, with a price of 225 cents per liter likely this summer.
He said the Ford government’s commitment to reduce its share of gasoline tax by 5.7 cents per liter and fuel tax – which includes diesel – by 5.3 cents per liter for six months from July 1 “will help a little.” ”
But at this point he said that what is needed is the intervention of the federal government.
“I think the federal government now has an obligation to alleviate a little bit because it’s not just about energy prices, it’s now spreading to other areas,” he said. “I don’t think you’ll find many Canadians arguing that it’s time for the federal government to take this energy issue seriously, which is now leading to an inflationary crisis.”