What Will Be The 'New Normal' For Gas Prices In Ontario This Summer?

On Saturday, the gas prices in Ontario rose by two cents per liter. Experts believe that a new normal for gas prices is coming, and drivers won't like it this summer. Ever since the Russia-Ukraine crisis began, gas prices have risen consistently. The crisis began in February, and at one point in March, the prices rose to a new high of $1.90.9 per liter. Thankfully, the prices dropped to as low as $1.64.9 a liter in April. However, the relief didn't last for long.

Will Two Dollars a Litre Will Be the New Normal?

According to Canadians for Affordable Energy President Dan McTeague, two dollars a liter might be the new normal this summer. He said, "We've spent a lot of time this country saying no to pipelines, and of course, these proverbial chickens are coming home to roost, and they're hurting consumers not just at the pumps but pretty much across the entire spectrum of the economy. We have the third-largest provable deposits of oil and gas in the world. We're not using it, and that's going to continue to put upward pressure on prices. Two dollars a liter this summer is, in fact, the new normal."

McTeague also thinks that the oil prices are being somewhat depressed by lockdowns in parts of China that are being done to limit the spread of COVID-19. He also said that when those lockdowns end, crude oil costs will increase among rising demand, and average gas prices in the GTA will also increase quickly.

Many parts of Canada are already paying much more than their expectations at the pumps. The average cost of a liter of gas in Vancouver is $2.06.9 at the time of writing this article.

McTeague said, "I expect we will be towards $2 a liter at some point around the May 24 weekend. I take no pride in saying this is going to happen, but we have been warning the circumstances are certainly pointing towards that."

Canada's Commitment to Produce More Oil, Gas, and Uranium

Canada also stated that it could provide more gas, oil, and uranium to help with the ongoing global energy crisis. The Natural Resources Minister Jonathan Wilkinson said that many countries are committed "to help as much as we can in terms of displacing Russian oil and gas." In an interview, he said that the country would also export an additional 100,000 barrels of natural gas.

He said, "We expect that by the end of the year, we will be fully up to the 300,000 barrels." He also stated that Canada is "absolutely" prepared to export more uranium. Mr. Wilkinson explained, "our uranium producers actually do have excess capacity and certainly could ramp up to help to fill the gap that Russian supplies will provide."

He also added that leaders must ensure that people "are able to heat their homes and that industries are able to produce the goods that we all need."

Know more about Ontario’s current fuel prices here.






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