Following two days of escalating prices at the pumps, GTA residents will get a bit of a break beginning tomorrow.

The price of gas will drop to $1.349 per litre overnight, Dan McTeague, operator of the website Tomorrow's Gas Price Today, told CP24 Wednesday afternoon.

A litre of regular gasoline now costs an average of 141.1 cents at Toronto service stations after a 1.5-cent increase overnight.

Wednesday's increase followed a record-breaking 6.5-cent jump Tuesday.

(Click here for the lowest gas prices in the GTA)

The back-to-back increases are fuelling fears that the price of gas will soar even higher this summer as more people hit the road.

Prices went up across most of Ontario and other parts of Canada, marching towards near record highs in many cities.

In Ontario, the inclusion of the harmonized sales tax on pump sales has added another 11 cents a litre to the cost of gasoline at current retail prices.

Ottawa saw a 2.5-cent increase to 135.4 cents, while the price jumped 1.2 cents in Vancouver, where gas stations are charging 140 cents per litre.

In Ontario, motorists are paying 134.2 cents in Kingston, 138.9 cents in Barrie, Kitchener-Waterloo and Peterborough, and 141.1 cents in Guelph, London and Hamilton, according to the website Tomorrow's Gas Price Today.

One of the highest prices – 149.3 – is found in Montreal, while one of the cheapest – 121.9 – is found in Calgary.

GasBuddy, another website that monitors fuel prices and trends, found that Ontario is being hit harder than any other province in Canada.

Reasons for spike vary

The reasons for the rising price of gasoline vary - ranging from Middle Eastern political instability to speculation in wholesale markets and fears that refinery closings in the U.S. Gulf Region from springtime flooding on the Mississippi River could cut gasoline supplies.

CIBC Economics energy analyst Emanuella Enenajor said prices will remain high unless there's a big, long-term dropoff in the global price of oil

"In order for declining crude oil prices to be reflected at the pump, we would need to see a sustained period of declining world-market prices for energy," Enenajor said in a report released Wednesday.

One reason pump prices are out of whack with crude oil is the effect of the "crack spread" -- the profit margin made by refiners transforming sludgy crude into fuel for cars. While oil prices are driven by the ability to pull crude out of the ground and global energy demand, refiners try to gauge how demand for their product will be affected by factors such as weather, seasonal driving and refinery capacity. Then they set what they will charge retailers based on that demand forecast.

The pump price rises Wednesday came despite crude oil prices heading lower to about US$103 a barrel and well off the record price of $147.

TTC feeling the pinch

With the rising price of gas, some people are turning to other options, including public transit, to save money.

But rising fuel prices also means rising costs for the Toronto Transit Commission, which has an $86 million budget for fuel in 2011.

This week, the TTC is paying $1.01 per litre of diesel fuel off the spot market, but that cost will likely go up next week, said TTC spokesman Brad Ross.

Ross said there are no plans for a fare hike this year.

He told CP24 the TTC is working with city to develop a long-term strategy for purchasing fuel to keep costs in line.

"With the price of fuel going the way it is we need to keep a very close eye on our budget with respect to fuel in case those prices continue to rise," Ross said. "If fuel prices continue to go up ... then it's likely that our fuel budget will have to increase, as well."

The TTC expects a total ridership of 483 to 485 million people in 2011, but the ridership spike won't offset the increase in fuel prices, Ross said.

Costs passed on to taxpayers

In addition to public transit, costs are passed on to taxpayers in other areas, including the realm of policing.

Appearing on The Commish on CP24 on Tuesday night, Ontario Provincial Police commissioner Chris Lewis said the impact on taxpayers is "huge" when gas prices jump even a small amount.

"Every time the price of gas goes up one cent at the pumps over the course of the year it costs the OPP $200,000 in additional costs over and above our budget for fuel," Lewis said.

The spike also puts a strain on the Toronto Police Service's budget, said spokeswoman Const. Wendy Drummond.

However, the police service doesn't scale back its operations or patrols because of rising gas prices, Drummond said.

With a report from CP24's Cam Woolley and files from The Canadian Press