Gas prices expected to spike

Prices have jumped 20 cents a litre compared to last year

Gasoline prices in Toronto were expected to jump by about six cents per litre starting midnight Wednesday — a “shocking” increase, according to an analyst.

“Average prices in the GTA will have gone up over 20 cents per litre compared to this time last year, so it’s a pretty big hit,” Dan McTeague of GasBuddy.com said.

Tuesday’s average price in the area was about 115.9 cents per litre. Wednesday’s prices were expected to be close to 121.9 cents per litre, said McTeague.

The price hike is part of an annual change as gasoline refineries, suppliers and retailers shift from selling winter-blended fuel to summerblended. The summer version is better able to withstand hotter temperatures — otherwise, it would evaporate and cause damage both to vehicles and the environment — and is required to be in place nationally by Saturday.

However, the additives required for the summer version are significantly more expensive, McTeague said. Though the price of oil will fluctuate, the higher price from the summerblended fuel will stick around until gasoline sellers switch back to the winter version on Sept. 15. This shift has been happening twice a year since 1995, McTeague said. “This is not something new.”

However, prices haven’t been this high since October 2014 and are likely increasing due to the weak Canadian dollar, McTeague said. The new stress of carbon pricing in Ontario and Alberta, which took effect this year, may also play a role.

Even if you don’t drive, this jump may affect your wallet. Since nearly all industries use gasoline to transport goods, the prices of other items may increase, McTeague said.