There’s no relief in sight for Toronto-area drivers or their wallets, with gas prices expected to reach yet another new high this week.
After falling one cent per litre on Thursday, one expert is predicting prices at the pumps in the Greater Toronto Area to climb five cents overnight to a record-setting $1.95 on Friday.
And it doesn’t end there.
Dan McTeague, president of Canadians for Affordable Energy, says prices will likely climb to $1.97 on Saturday and reach $2 sometime in the next week.
“The world wants more [gas] and there is less to provide,” McTeague told CBC Toronto Thursday.
One driver is rushing to fill up his tank before prices jump at midnight.
“Knowing that [prices will rise], I’ll be sure to be back to fill up again before the end of the day,” said Matt Carter adding that these surging prices are putting a strain on his family’s finances.
“I have a child — I have things I need to pay for outside of this,” he said.
“I make a decent income and things are getting pretty tight, which is crazy.”
What’s behind the spike?
Friday’s spike will break Toronto’s previous record reached back in March, when prices hit $1.90 for one day, but fell quickly by 15 cents the next day due to market volatility.
McTeague says there are many reasons for these hikes, but the main issue comes down to supply and demand.
“It doesn’t matter if it’s Canada blocking pipelines or the United States is not producing what it was producing pre-pandemic — the reality is that as the world is trying to catch up, there is a realization there’s less supply,” he said.
Those factors are made worse, McTeague says, by “real nervousness that once Europe goes through the process of turning its back on oil and gas in Russia, there will be an even greater shortage.”
So is there an end in sight? The short answer is no, McTeague says.
“Unless there’s a combination of new production of oil refineries being able to play catch-up, a drop in demand, a federal government willing to back off on its carbon tax, as well as moves to allow more pipelines to be built in this country,” he said.
The prediction that gas prices will only continue to skyrocket is causing some drivers to rethink their vehicle choice altogether.
“I’m spending about 300 a week on gas,” said Jordan Devouge. “Add that up every month gets to be pretty pricey.”
“[I] might get an electric vehicle just to get to the cottage, who knows.”
Others are still trying to find a way to balance the books.
“I have four kids so I need my car — it’s essential to get them to school every day. So we’re budgeting that with rent and all the essentials,” Jessy Isaac said.
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