Finally, some good news for Ontario drivers. If you've been waiting to fill up your tank, this weekend is the time to do it. Based on insights from industry experts, Ontario gas prices are expected to drop three cents at midnight tonight. At most GTA gas stations, this would bring the average price of gas down from 124.9 cents per litre to 121.9 cents per litre by tomorrow, reports GasBuddy Analyst Dan McTeague.
Ontarians have been seeing a gradual rise in the price at the pump over the last several weeks, especially since April 1st, when the federal government's new carbon tax of 4.42 cents per litre, plus HST, came into effect on gasoline.
As for the rest of the summer, though, Ontarians can expect gas prices to be high, but not record-breaking. That's because gas prices have actually been dropping to offset the cost to consumers of the federal carbon tax. According to Dan McTeague, "A trade war between the United States and China the number one and two global economies — many believe that they could have an effect on driving prices down as it would drive demand to a much lower level."
According to the provincial government's motor fuel prices webpage, the federal carbon tax is scheduled to increase on an annual basis. By 2022, the tax is expected to reach 11.05 cents per litre.
The provincial government also noted on its webpage that although the federal carbon tax is not part of the wholesale price of gasoline, it is treated like any other tax, which is reflected in the retail price of petroleum.
Back in 2018, Ontario eliminated the provincial cap-and-trade-program, which led to gasoline price increases of approximately 4.3 cents per litre. In September of 2018, it was removed from wholesale gasoline prices throughout the province.
In Ontario, the wholesale price of gasoline is benchmarked by North American wholesale markets at various locations, such as the New York Harbor.
With the exception of the United States, gasoline prices in Canada are among the cheapest of all other industrialized countries in the world, including the United Kingdom, France, Germany, and Japan (based on average prices from April 2019). Despite paying a higher base price on petroleum, Canadians pay relatively low gasoline-related taxes compared to other nations.