Toronto may see an influx in cyclists.
If you've been hoping to see positive change at the pumps these past couple of days, you might want to brace yourself because the summer will be heartbreaking for
Dan McTeague, gas analyst and president of Canadians for Affordable Energy, confirmed to Narcity that he believes that gas prices will continue to rise before settling at $2 per litre for most of the season.
The grim news comes after rates rose for two days straight in the GTA, potentially bringing prices to a dismal 188.9 cents per litre on Saturday.
So, what's causing gas prices to reach these depressing heights? McTeague says it comes down to a variety of factors.
"Market is being held back by talk of COVID- related shutdowns in China. Once this ends, demand will get even hotter," he said. "On the supply side, same problem: years of ESG -drive underinvestment and penalties for emissions from production are disincentivizing the industry from exploration and developing future supplies."
"They're making money sitting on what they have," he adds.
"A weaker Loonie, carbon taxes, and 13% tax doesn't help," the expert concludes.
The ludicrous rates have not gone unnoticed by the Ontario government, with Minister of Finance Peter Bethlenfalvy announcing on Thursday that gas taxes will be cut for six months due to rising prices.
The initiative will slice the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months beginning July 1, 2022.
Hopefully, the move will give Torontonians some much-needed relief because let's face it, it's expensive enough as it is.
This article's cover image was used for illustrative purposes only.
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