According to one industry analyst, the price of gas in the Greater Toronto Area is projected to hit a new high tomorrow, and drivers are unlikely to see any relief at the pumps anytime soon.
According to Dan McTeague, president of Canadians for Affordable Energy, the average price of a litre of gas in the GTA is projected to jump more than two cents overnight, to $1.51.9, a new high.
This is higher than the previous high of $1.49.9, which was established on Nov. 4 before the Omicron variety was discovered.
“COVID, especially Omicron, really kicked down the road an earlier move towards $90 a barrel. It basically had markets believing that we’d be going back to lockdowns and nothing of the sort really happened so this is really pent up demand coming back with a vengeance,” McTeague said. “Whether we like it or not when countries like the United States are short 1.4 million barrels of production a day from where they were pre-COVID you can kind of see what happens when demand takes over.”
McTeague said that the rise in gas prices is being driven by several factors, including a global shortage of oil and recent “geopolitical tensions between Russia and Ukraine.”
He said that by the end of the year gas prices in the GTA could reach an average of $1.65 a litre, especially once the federal government’s new Clean Fuel Standard comes into effect in December, 2022.
“These prices are not likely to come back down,” he warned.