Prices at the pump headed higher as long weekend starts

CALGARY — Motorists in many parts of Canada are expected to see rising gasoline prices as they fire up their vehicles for road adventures on the Victoria Day long weekend.

But price direction will vary across the nation, said fuel market analyst Dan McTeague of GasBuddy.com, with prices rising in Ontario, the Maritimes, Manitoba and Saskatchewan but actually expected to fall from recent peaks in Alberta and Quebec.

He says prices for regular gasoline in Toronto, Hamilton, Ottawa and most of the rest of Ontario are expected to rise by one cent per litre on Friday and another cent on Saturday, reaching an average of 140.9 cents per litre, the highest since June 29, 2014.

“We said this would be the highest price (in four years) ... but honest to God, I never thought it would be this high,” said McTeague.

As of Thursday afternoon, GasBuddy.com showed the average Canadian gasoline price as 134.4 cents per litre, up 2.6 cents from a week ago and 26 cents from the average of 109.4 cents per litre last year.

The highest average price it has recorded in Canada was 142.4 cents in August 2008, it says.

Higher fuel prices at this time of year are to be expected because increased demand allows retailers to build in bigger profit margins, said Kent Group vice-president Jason Parent.

“We’re into the beginning of the summer driving season and demand’s on the rise and supply generally is a bit tighter,” he said. “The general trend at this time of year is upward.”

Earlier this week, Ontario Progressive Conservative leader Doug Ford promised to lower gas taxes by 10 cents per litre by cutting 5.7 cents in provincial taxes and another 4.3 cent from his pledge to eliminate the province’s cap-and-trade system.

Gas prices across the country and in parts of the United States have been hovering near record highs, and there is little relief in sight.