Gas prices expected to hit new record high of $2.15 per litre over the weekend

The price of gasoline is expected to reach up to $2.15 per litre this weekend as prices continue to rise due to inflation, Russia's invasion of Ukraine, and several other market forces including increased demand for the summer season.

Dan McTeague, president of Canadians for Affordable Energy, says it's a "meteoric rise" due to the above factors but also a tightness of supply. McTeague also runs GasWizard.ca, a website that offers price predictions to give drivers a two- or three-day notice.

He says he doesn't see a scenario where gas prices will drop.

"This is a rolling stone that's gathering no moss, except it's not going downhill, it's going uphill," McTeague said. "There isn't really much solace in gas prices, they will continue to rise as their demand continues to escalate."

McTeague says gas prices were 203.9 cents per litre on Thursday, 208.9 cents per litre on Friday, and on Saturday and Sunday they'll reach 211.9 cents per litre and 213.9 cents per litre, respectively.

Post-pandemic demand— including recent annual summer demand— combined with Russia's invasion of Ukraine and a global shortage in production of two million barrels a day is why gas prices keep rising, he says.

"Gasoline shoots ahead of everything in the summer," McTeague said. "But there is evidence of extreme tightening of the global supply of energy, made no better by what we've seen geopolitically."

A weak Canadian dollar is also a contributing factor, he says. This time last year, gas prices were $1.30 per litre in the Greater Toronto Area.

McTeague said he believes the re-elected Progressive Conservative government's pledge to drop the gas tax by 5.7 cents a litre will provide some relief, but not much. He thinks eventually gas prices will reach $2.20 per litre across southern Ontario.

"Don't look for anything under $2 a litre, it's staying here for quite some time," he said.