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Published: October 29, 2022
The average price of a liter of gasoline is scheduled to reach its highest level in three months on Saturday, but at least one industry analyst says the pace of recent increases cannot continue forever. Gas prices also rose by three cents per liter overnight across most of southern Ontario, and are now scheduled to rise another four cents at midnight. This brings the average cost of a regular liter to 180.9 cents per liter, the highest price since July 28. However, Dan McTeague, president of Canadians for Affordable Energy, told CP24 there might be some modest relief for drivers later in the weekend, adding: "It’s been a sudden and somewhat dramatic increase, about 20 cents per liter over the past three or four working days. But what I feel is that this may be a bit fast and very easy to pass on given the increases in both oil and gasoline and diesel prices, of course. So I don’t think this will last. And on Sunday, we might get a small break, perhaps a decrease of two or three cents per liter." Also, gas prices rose earlier this summer amid concerns about the war in Ukraine and at one point exceeded $2 per liter for a period of time. They dropped to 143.9 cents per liter in September amid fears of a global recession but have risen again in recent weeks. McTeague also told CP24 on Friday: "It’s impossible to predict more than two days out just because the market is very volatile right now. There are 'a lot of moving parts,' the most important being concerns about the global economy and the destruction of demand caused by these high prices. But to compete with this reality, there aren’t enough petroleum products, notably heating oil where we might look at a scenario especially in parts of the eastern United States and Atlantic Canada where furnace oil may already be rationed." In addition to supply chain issues related to the war in Ukraine, McTeague said that the "weakness of the Canadian dollar" could put further pressure on local gas prices. Also, the six-cent reduction on the Ontario portion of the gas tax is set to expire at the end of December. So far, the Ford government has not said whether it will consider extending the limited time measure or not.
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