FUEL CONCERNS: Price on pumps reaches 7-year high

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“This is just the beginning,” says one energy analyst.

Author of the article:

Scott laurie

Publication date:

October 08, 2021 • 8 minutes ago • 2 minute read • 193 reviews

People pump gasoline into their vehicles at an Esso station in Toronto on Tuesday, June 15, 2021.
People pump gasoline into their vehicles at an Esso station in Toronto on Tuesday, June 15, 2021. Photo by Tijana Martin /THE CANADIAN PRESS ARCHIVES

At the pumps, there doesn’t seem to be much to be thankful for.

The growing impact of stickers shows some signs of sticking around.

The average price at Toronto pumps hit $ 1.43 on Thursday.

“We are going to stay in this neighborhood for the next week. At least until Wednesday, ”said Canadian for Affordable Energy President Dan McTeague. “And then we’ll see where the markets go.”

Where they have gone, he says, is at a price level that we have not reached since 2014.

“Everything is going up and with it, of course, the cost of living,” McTeague said. “And for many people, the affordability of energy is under attack.”

The energy analyst attributes the latest increase to increased demand for energy at a time when supply is not keeping up.

“Now we find ourselves in a situation where the prices of everything have nowhere to go but up,” he said.

“It is not just gasoline that I am talking about. All the comforts you can imagine. From our wood to our cars, to the cost of our books, to our food. “

The concern is that this could be the tip of the inflation iceberg.

Figures from Natural Resources Canada show that the price at the pumps has soared by around 25% since January 1.

With gasoline prices reaching highs, McTeague believes this is the beginning of an upward trend that will hit the average consumer in many different ways.

Especially with domestic heating.

The price of natural gas, which many use to heat their homes, has soared about 121% since January 1.

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This significant jump in natural gas will be a huge challenge as Canadians prepare to enter the winter months.

“I think this is just the beginning of an upward curve in terms of prices, not just for heating oil and gasoline and oil itself, but for natural gas and propane,” McTeague said.

Gasoline taxes, a lack of investment in Canada’s oil and gas sector, and the drive to meet national emissions targets are just a few of the factors McTeague highlights as drivers of inflation.

“Because we are not marketing enough of our number one export, which is oil and gas,” he said.

Reference-torontosun.com

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