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.
“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.
“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.”
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.”