Advertisement

Sharp jump in London, Ont. gas prices expected in April

File photo.
File photo. Tom Merton via Getty Images/FILE

You’ll have to reach a little further into your wallet to pay for gas starting Monday.

Dan McTeague, a senior petroleum analyst with GasBuddy.com, says the first bump coming Monday will lift prices across all of Ontario by five cents.

READ MORE: Gas prices in Hamilton expected to hit $1.35 per litre

“At midnight Sunday night, the federal Liberal carbon tax kicks in and that is good for a five-cent net wholesale price increase,” he explained.

“I say wholesale net because a lot of people are going to tell me, ‘Well, I bought it for $1.08 when it’s $1.19 everywhere else.’ That $1.08 would effectively become $1.13 and that $1.19 would become $1.24, so it doesn’t really matter where you are.”

Once you get comfortable seeing that number around the city, McTeague says there will be a second, more expensive increase in the middle of April because of the switch-over from winter to summer gasoline.

Story continues below advertisement

“That will add yet another 10 cents a litre to the price of fuel. So, you’re paying $1.19, $1.18 right now, look for a net 10 cent a litre increase by the 15th of April,” he said.

“And that doesn’t include what I think the market is about to do: break out with another five to eight cents a litre in the month of April heading towards May.”

READ MORE: Gas prices likely to rise in ‘wild, bumpy’ 2019, fuel expert says

McTeague says a pinch at the pumps is being felt everywhere, in part due to strong demand in the United States and a tightening of the oil supply across the globe.

“We’re up 20 cents a litre since the beginning of the year, we’re probably heading up another 15 before Memorial Day long weekend. So the new normal for us in London? Look for $1.35 at top end, $1.25 at low end.”