It appears the prices at the pumps have bottomed out and will now start to head back up.
That according to Dan McTeague, president of Canadians for Affordable Energy, who told media that increases are expected over the next two weeks. “The federal carbon tax, surprisingly, is going to be increased about 50 per cent, so about 2.5 cents a litre. The following week, we shift from winter to summer blends of gasoline, which cost most refineries about four or five cents a litre to produce because there is a material difference. This is a national regulation that’s been in place for some 20, 30 years”, McTeague said.
Prices have already shot up in the Toronto area with an average price of 71 cents a litre (it was 67 cents last week).
Here in the Sault, the average price as of Monday morning is 87.4 cents. The lowest its been in several years.
Comparing Sault Prices to other Northern Ontario cities, North Bay’s average was 84.1, in Thunder Bay as of Monday morning 89.2 cents, while in Sudbury the price was averaging 87.5 a litre.
Analyst say that many factors have contributed to the situation include rail blockades in Canada, the economic impact of the novel coronavirus outbreak and a glut of oil on the market as Saudi Arabia continued to pump more oil.