Ontario Drivers Face Gas Price Hike Starting Sunday

Ontario motorists should expect higher fuel costs beginning this Sunday.

Dan McTeague, head of Canadians for Affordable Energy, provided the forecast after energy markets closed on Friday, Oct. 30.

He noted that shifts in the energy market are reflected at the pumps with a two-day delay.

Gasoline prices are expected to remain flat from Friday through Saturday.

A six cent increase per litre is projected for Sunday.

This adjustment would bring the morning peak price for regular-grade gasoline in the Greater Toronto Area to 179.9 cents per litre.

Diesel prices will follow a different pattern.

McTeague anticipates a four cent drop per litre on Saturday.

Prices are then expected to rise by three cents on Sunday.

That would place diesel prices in the GTA at 249.9 cents per litre on Sunday morning.

The new rates for both gasoline and diesel are expected to hold steady through Monday and Tuesday.

Warmer weather this fall has kept diesel costs lower than they might otherwise be, according to McTeague. He stated that without the mild temperatures, diesel prices would be much higher, as demand for the fuel typically spikes in colder months. The current price increases stem from the U.S. and Israel launching an attack on Iran on Feb. 28. Iran retaliated by targeting Middle Eastern countries hosting U.S. troops and attacking shipping vessels in the Strait of Hormuz. The International Energy Agency reports that about 25 per cent of the world’s seaborne oil trade passes through that strait, along with about 19 per cent of liquefied natural gas. The U.S. responded to Iran’s blockade by imposing its own restrictions on Iranian vessels and ports. These blockades were lifted and later reinstated during the ongoing conflict. The disruption has choked off a large supply of oil from global markets, driving up prices. Because Canadian oil is traded on the global market in U.S. dollars, its price moves with the rest of the world’s oil, even for domestic purchases. McTeague advises drivers to wait until the evening to buy fuel, as stations reduce their profit margins at those times. He said, “Never buy your gas before 6 p.m. in the GTA.” Prices are also generally lower outside the GTA and major cities, making it cheaper to fill up on the way out of town. Drivers can find price predictions on the Canadians for Affordable Energy website and use gasbuddy.com to locate the cheapest options in their communities. Ontario also publishes a motor fuel prices report for additional data.