TORONTO – Bad news for Canadians. Gasoline prices are skyrocketing and reach levels never seen before in the country. These are increases that heavily affect citizens, already weakened by the pandemic crisis, which has inevitably become an economic crisis.
The ongoing geopolitical tensions in Eastern Europe are behind last week’s increase in the cost of fuel by 25 cents per liter: since last Monday the average price of a liter of gasoline in the GTA has increased from 1,58.9 to 184.9 dollars. And this, according to Canadians for Affordable Energy president Dan McTeague, is just the beginning, it’s “the quiet before the storm.”
It is not destined, therefore, to stop the increase in prices at gas stations. McTeaque says that “residents will continue to suffer when they go to get gasoline as the reverberations of Russia’s decision to invade Ukraine continue to drive up the price of Brent crude.”
There is no room for rosy forecasts, far from it. McTeaque says he expects oil to approach $150 a barrel in a matter of weeks, and this will cause the cost of gasoline to exceed $2 per liter.
Recently – at the end of February to be precise – the cost of a barrel of oil was 95 dollars but exceeded 120 dollars in a flash due to fears that the United States would cut oil imports from Russia, which represents about 5% of the country’s supply. “This is really just the quiet that precedes the storm because I think we’re heading towards $150 a barrel of oil and that will mean that gasoline prices will easily go up to $2 per liter probably already in the coming weeks unless things between Ukraine and Russia change dramatically,” McTeaque said.
McTeaque told CP24 that he initially thought fuel prices wouldn’t reach $1.90 per liter before a week or two, but now expects that threshold to be touched as early as this week, starting with a three-cent increase expected on Wednesday that will push the price at pumps to an average of $1.88 per liter.
And never as in this case fits perfectly the saying “it rains in the wet”: a planned increase in the carbon tax from eight to 11 cents per liter starting from April 1, warns the president of Canadians for Affordable Energy, could also further inflate the costs.
An unpleasant situation, this flurry of petrol increases, for the pockets of motorists: numerous officials – the mayor of Brampton Patrick Brown is among them – have asked the federal government to suspend the increase in excise duty for now.
“Three weeks ago, during the budget consultations, I recommended to the Finance Committee that it would be a good idea to at least freeze the increase,” McTeaque said, “last year, just during this period, gasoline across the country was about $1.24 per liter, the additional 60 cents are now being taxed at 13 percent. Maybe they should reimburse part of that GST, especially to people who are going through a difficult time, who are sailing in bad waters. As we know, this will spill over into other areas of the economy, particularly those of us who don’t drive, on the cost of food and in other areas. It’s inevitable and I think governments have no choice, they have to find ways to slow down the price bull run.”
