Drivers across southern Ontario are likely going to see a significant increase in the price of fuel over the next two days, according to one industry analyst.
Prices jumped by six cents Tuesday night to 166.9 cents a litre and are expected to jump another seven cents on Wednesday, followed by a three cent increase Thursday, reaching 176.9 cents per litre Friday.
The last time Ontario gas prices were this high was July 28 of this year, but Canadians for Affordable Energy president Dan McTeague says he doesn’t expect the price to go down anytime soon.
“Demonstrably, what you’re seeing is the underinvestment in oil and petroleum production rearing its ugly head,” McTeague told CP24 Wednesday. “Supply continues to be seriously constrained. We are heading back to a $1.80 [per litre] or $1.85 [per litre] even.”
McTeague says that prices are likely going to keep climbing and could soon reach over $2 per litre.
He added that the provincial government’s adjusted gas tax rate, which has been reduced by around six cents per litre, is scheduled to return to its normal rate in January, which will further increase the price of fuel.
McTeague says that inflation, along with certain policies aimed at combating carbon pollution, including the federal government’s scheduled “clean fuel standard” tax, will continue to make energy affordability that much more challenging.