In refreshing news at the pumps, Ontario gas prices are dropping this weekend. After weeks of politicians and industry experts talking non-stop about rising gas prices due to the carbon tax, this weekends price break will come as good news to Ontario residents. This latest change has nothing to do with the carbon tax, but rather the seasons changing.
As the weather warms up, gas refineries and suppliers are getting ready to switch over to their summer fuel blend. In fact, gas stations all have to switch to this summer blend by this Sunday, April 14, at midnight.
For people who aren't familiar with the oil industry, when it comes to gas, there are two different fuel blends used throughout the year. In the summer blend, they have to add more ingredients that help prevent the gas from evaporating in the heat. Because there are more ingredients that blend costs more.
So if that gas costs more, why are prices dropping this weekend? That answer is very simple. Think of it as an end of the season clearance sale. According to Gas Buddy analyst, Dan McTeague, the gas stations in Ontario are all liquidating their winter gas this weekend in order to get rid of it.
In fact, McTeague reveals, for the first time since the federal carbon tax was introduced, that there are no signs of prices at the pumps rising at all this weekend.
This means that prices are actually relatively low today. While the average price in the GTA is around 130.9 cents/litre, according to McTeague, some people have reported seeing prices in the 120s, and we've even seen night time prices north of the city as low as 110 cents/litre.
Unfortunately, decreased gas prices won't last long. Since the gas stations will be switching over to their summer blends this upcoming Monday, the price at the pump will go up to accommodate for the new blend.
On top of that, the federal carbon tax has been in place since April 1, driving the price of gas up slightly by 4 cents/litre.