Gas prices at $2 per liter ‘the new normal’ in GTA this summer, analyst says

Greater Toronto Area gas prices are set to go up another two cents per liter tomorrow and at least one industry analyst says that he expects $2 per liter to be “the new normal” for drivers this summer.

The cost of gasoline has risen considerably since Russia invaded Ukraine back in February.

At one point in March drivers were paying a record $1.90.9 per liter to fuel up, however prices did drop as low as $1.64.9 per liter earlier this month.

The relief at the pumps was short-lived, however.

Gas prices across the GTA have now risen on back-to-back days and will go up another two cents to $1.88.9 per liter at midnight.

Speaking with CP24 on Friday, Canadians for Affordable Energy President Dan McTeague said that he anticipates prices will continue to rise before settling in at around $2 per liter for most of the summer.

“We’ve spent a lot of time this country saying no to pipelines and of course these proverbial chickens are coming home to roost and they’re hurting consumers not just at the pumps but pretty much across the entire spectrum of the economy,” he said. “We have the third largest probable deposits of oil and gas in the world. We’re not using it and that’s going to continue to put upward pressure on prices. Two dollars a liter this summer is in fact the new normal.”

McTeague said that oil prices are being somewhat depressed by lockdowns in parts of China to limit the spread of COVID-19.

But he said that when those come to an end, the cost of crude oil will rise amid increased demand and average gas prices in the GTA will shoot up.

In fact drivers in some parts of Canada are already paying a lot more at the pumps, with the average cost of a liter of gas in Vancouver now at $2.06.9.

“I expect we will be towards $2 a liter at some point around the May 24 weekend,” McTeague said. “I take no pride in saying this is going to happen but we have been warning the circumstances are certainly pointing towards that.”

Russia is the world’s third-biggest oil producer, accounting for about 11 per cent of the global supply.

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