Prices at local gas stations sat around $1.58 per litre on Tuesday – and they don’t appear likely to come down anytime soon.
A prominent analyst predicts the price at the pumps in Waterloo Region, along with other parts of southern Ontario, could spike by eight cents per litre before the work week is over, as the war in Ukraine drives up gas prices around the world.
Dan McTeague, president of Canadians for Affordable Energy, expects the cost of fuel will rise by two cents Wednesday, then a further six cents by Thursday, hiking gas prices to a record $1.67 a litre in Waterloo Region and around the GTA.
McTeague said crude prices have already risen by $12 per barrel just in the last week alone.
McTeague pointed to data from the United Nations International Trade Statistics Database, which he says shows Canada imported $378 million in petroleum products from Russia in 2021.
According to McTeague, the war in Ukraine is raising concerns there won't be enough supply to meet the global demand for energy, so crude prices will climb and we're in for even higher prices in the near future.
"Markets are not quite settled yet, but we do know that the Canadian dollar has weakened on a day that oil prices are going up, something that didn't happen in the past,” said McTeague. “So get ready, fasten your seatbelts. It looks like we're likely on our way to $1.75 per litre at some point in the next couple weeks.”
McTeague added it's going to be an even bigger jump for diesel, which he expects will cost about 13 cents more per litre by next week.
Fuel prices have gone up about 25 to 30 cents per litre since the beginning of January, which is an increase of about $30 to $40 dollars per week for the average driver, McTeague said.
