Ontario Gas Prices Could Be ‘All Over The Map’ Amid Substantial Falls, Analyst Says | Globalnews.ca

While some Ontario drivers might be enjoying the recent drop in gas prices, analysts say the cost of fuel could be “all over the place” in the coming weeks.

On Thursday, most major cities in the province saw gas prices drop another 12 cents, averaging $1.79 a liter for Toronto, GTA, Ottawa, Hamilton, London, Barrie, Kitchener and more.

But according to Dan McTeague, president of Canadians for Affordable Energy, the cost of gas could change direction in the coming weeks.

“Supply is often tight, and if anything, such a drastic drop in prices can encourage people to use more of what we have less of,” McTeague said.

He said this could result in an “energy supercycle” or a temporary crash in the markets.

1:30
Oil analyst predicts gas price drop of 12 cents per liter from July 7

“In particular, those who do not have a basis in supply and demand fundamentals when making their decisions may very well be pushing oil back up to $150 a barrel,” McTeague explained.

He added his concerns about a possible recession.

“I think we are going to start to see prices level off and then go back up, especially as we gather evidence that the supply picture is much worse than concerns about demand destruction as a result of these high prices. and the threats of a recession. MacTeague said.

On Friday, a drop is expected to bring costs down to $1.76 a liter in the GTA and most Ontario cities, which could be the lowest payment since April 15.

The drop in prices comes as the province’s gasoline tax cut took effect on July 1.

“It has never been more important to do so and provide Ontarians with real relief,” Premier Doug Ford said in a press release Friday. “This gas tax cut will provide more relief at the pump for working families and businesses and put more money back in their pockets, where it belongs.”

The Ontario government cut the gas tax by 5.7 cents per liter through the end of the year.