Ontario gas prices to hit $1.79 per litre this week: energy analyst

People looking to fill up on gas in Toronto will have to dig a little deeper in their wallets. The price of gas is expected to rise overnight Thursday by 14 cents, gas and energy analysts say.

Industry insider Dan McTeague, the president of Canadians for Affordable Energy, who also runs GasWizard, a website that tracks fuel prices, says gas will rise to its highest rate since August 2022. He says it's a three-fold issue.

"It's the perfect trifecta," he told CBC. "Tensions in the Middle East, the carbon tax increase and the switch-over which happens semi-annually from winter to summer gasoline."

The price per litre of gasoline will now rise to around $1.79 across Ontario. That's the most expensive gas price since August 2022.

McTeague says higher gas prices each spring are partly due to the change-over in fuel blends, going from the cheaper winter blend to the more costly summer blend of fuel.

"There is a chemical differential, and that's pretty substantial. In the winter, we use butane as one of the primary mixtures," he said. "When it gets cold, you want something that ignites better."

"When it's warm, you don't want something that's that volatile. In order to reduce any damage to the environment, you blend it with something called alkylates, which are extremely expensive."

McTeague predicts the price of gas will continue to rise throughout the summer, but notes it's hard to say how expensive a litre of gas could eventually become.

"We have to look at summer demand, which begins its kickoff on the May 24 weekend," McTeague said, adding that severe weather, such as hurricanes in the Atlantic, and geopolitical events play a part in the price of oil per barrel.

McTeague says Canadians can expect the price of gas to cool in September, but come January, it should rise again once a second carbon tax hits the pumps.

He also has some advice for people in the Greater Toronto Area looking to save even a few dollars and cents on gas.

"Gas stations only have control over nine cents a litre at best." he said. "I was in Peterborough yesterday. I could still get gasoline there for $1.55.9. I don't expect people to pick up in Toronto and drive to Peterborough, but there are places, as close as Oshawa or Hamilton, where you will find that kind of 'wild west' cutthroat competition in the last nine cents."

He also suggests filling your tank on evenings or weekends to save a few bucks.