Brace yourself, drivers. A significant surge at the gas pumps is looming, poised to push prices to nearly $2 a litre across the Greater Toronto Area by Wednesday.
Fuel cost forecasts predict a jump to 195.9 cents per litre – a seven-cent increase from Tuesday’s prices. Those who prefer premium fuel will face an even steeper climb, potentially nearing $2.26 a litre.
Experts warn this isn’t a temporary blip, but the beginning of a renewed upward trend. Eastern Canada is expected to bear the brunt of the increase, with an average hike of eight cents, while Western Canada will see a five-cent jump.
Diesel drivers aren’t spared either, anticipating an average price of almost $2.10 a litre on Wednesday. The situation is rapidly approaching a critical threshold – the dreaded $2-a-litre mark.
The escalating prices echo those last seen in May 2022, a period following the disruptions of the COVID-19 pandemic and a surge in demand. Now, a new geopolitical factor is driving the pain at the pump.
The recent conflict involving the United States and Israel, beginning in late February, has triggered anxieties in the energy markets. The closure of the Strait of Hormuz – a vital shipping route for oil tankers – is at the heart of the concern.
Even if the Strait of Hormuz were to reopen, experts caution that it wouldn’t instantly resolve the current oil deficit. A substantial 1.2 billion barrel shortfall remains, creating ongoing instability.
Adding to the pressure, the arrival of warmer weather traditionally fuels increased demand, coupled with the seasonal shift to more expensive summer fuel blends. These factors combine to exacerbate the financial strain on drivers.
Many Canadians are already altering their summer plans, limiting or even cancelling road trips due to the increasingly prohibitive cost of fuel. The impact is being felt across the country, reshaping travel habits and budgets.
Recent inflation figures, jumping to 2.4% in March, further underscore the impact of the global oil shock. The rising cost of energy is a significant contributor to the broader economic pressures facing households.
