The price of a litre of gasoline is expected to jump another six cents at midnight, but there could be relief on the horizon, according to one industry analyst.
Dan McTeague, president of Canadians for Affordable Energy, tells CP24 that he is projecting a 15 cent drop as of Friday which will bring the price of a litre of fuel from $1.90.9 to $1.75.9 across the GTA.
McTeague, however, warns that the one-day drop could be an aberration as Russia’s decision to invade Ukraine continues to put upward pressure on oil prices.
At one point earlier this week, the cost of a barrel of oil hit US$140, its highest level since 2008.
But on Wednesday, prices plunged 17 per cent to US$105 a barrel in the wake of the United Arab Emirates calling on OPEC to ramp up production.
“I never thought I would be cheering on $1.75.9, but nevertheless, it is at least going in the right direction and provides a small respite from what has otherwise been an upward push on prices,” McTeague said. “'I think we are still going to be looking at (US) $150 oil sooner or later, more than likely now pushed down the road by several weeks.”
The average price of a litre of regular gas in the GTA has risen 32 cents so far this month.
McTeague said that he expects gas prices to continue to be in the “$1.80 plus” range for the foreseeable future with the possibility that gas prices could surpass $2 a litre down the road.
But in the interim, he said that drivers should expect lots of fluctuation at the pumps.
“It is impossible to make any type of determination because we're looking at a scenario where markets are so volatile,” he said. “I think many of the markets are trying to find their footing to find the true between supply and demand. That may take several weeks.”
