Londoners to see gas prices fall 5 cents overnight but rise 10 cents by May long weekend

The price of gas over the last few months has been a turbulent climb to heights, and the price is expected to rise even more as we enter the summer months.

After climbing seven cents a litre Tuesday night, experts say it should fall five cents Wednesday night, which would put the average price at around $1.78.9 in London, Ont., by Thursday morning.

But Dan McTeague, president of Canadians for Affordable Energy, tells Global News that soon, $1.90 a litre will be the new reality.

McTeague said people should expect at least a 10-cent increase from current numbers for the May long weekend and into the summer months.

“The Biden administration decided it would release emergency supplies of oil — not a very smart thing to do. It sends a signal to producers they should not produce because you are just going to flood the market,” McTeague said.

He notes that are some factors leading to the recent increases, some of which can be blamed on oil companies switching to their summer blend, but McTeague notes the value of the Canadian dollar also has a big impact on gas prices.

Other factors like possible hurricanes in the Gulf Coast and United Station could cause prices to hit $2 a litre, McTeague said.

What could help, McTeague said, is if the federal and provincial governments cut taxes on fuel, which could lead to a combined savings of 19 cents a litre.

Still, he said a major factor is the value of the Canadian dollar, as prices are set in the American dollar.

Gas prices rose 39.8 per cent from a year ago, which sent inflation soaring to 6.7 per cent in March. That’s up from 5.7 per cent in February and represents the fastest year-over-year increase since January 1991.

— with files from Natalie Lovie