Gas prices expected to rise to 191.9 cents per litre on Saturday in Toronto

Gas prices expected to rise to 191.9 cents per litre on Saturday in Toronto

Drivers may want to wait to fill tanks until Sunday, when prices may drop by 5 or 6 cents

Drivers across Toronto may want to wait to fill their tanks this weekend after a rise in prices Friday and another surge expected Saturday, says one expert.

Gas prices went up seven cents Friday to about 185.9 cents per litre, according to predictions by Canadians for Affordable Energy (CAE).

It said another six cent increase is expected Saturday, bringing gas prices to 191.9 cents per litre.

Anyone looking to fill their tanks may see a reprieve in prices on Sunday with a possible drop of five or six cents, CAE president Dan McTeague told CBC Radio's Metro Morning on Friday.

Rising gas prices are "bad news," but it's not a record increase for the city, McTeague said.

He said GTA residents saw gas prices this high earlier this year when the U.S. and Israel-Iran conflict began.

Typically gas prices will taper off this time of year, but refiners in the United States and around the world are "trying to play catch up" with prices while discussions to open up the Strait of Hormuz take place, he said.

"A lot of the infrastructure in the Persian Gulf was damaged [during the conflict]. So as a result, we are seeing some upward pressure on gasoline," McTeague said.

McTeague expects to see decreases in the longer term, given that rising costs are "a little overdone."

"The cost going through the roof means there will be a bit of a signal of demand destruction," he said. "I think markets are saying, 'All right, we've brought it as far as we could. We're going to drop it a little bit.'"

Regular people 'suffer' when costs rise: resident

Toronto resident Fabian Chan said he chose to pump gas on Friday, before costs went even higher on Saturday.

He said the cost of everything, not just gas, has gone up since the pandemic.

That's been especially detrimental for retirees like him, who depend on the Canadian Pension Plan and old age security for income.

"CPP and old age security cannot catch up with inflation," he said. "I think most of the companies use excuses to jack up the prices and we ordinary citizens have to suffer."

Diesel prices drop Saturday, but still high on average

Meanwhile, diesel prices are seeing a drop in pressure, said McTeague. He said prices went up three cents a litre on Friday and are expected to drop by eight cents on Saturday.

But on average, diesel prices across the country are still higher than ever before, he said.

While the country has enough diesel, natural gas and gasoline to dip into to ease prices (with enough still left for trade), McTeague said federal and provincial authorities can do more to lower costs.

How the U.S.-Iran conflict is impacting gas prices in Canada

GTA gas prices up 6 cents. Conflict in the Middle East expected to drive them higher

He said the government should look to remove all taxes on fuels, such as Ontario's HST and the federal clean fuel standard.

McTeague noted that in previous years, the Canadian dollar was able to add some buffer to protect residents from rising fuel prices.

"It no longer does that. The fact it takes 142 pennies to buy a U.S. dollar adds about 50 to 60 cents a liter to the price of diesel," he said.

Arrthy Thayaparan is a writer at CBC Toronto with interests in health, climate, education and community stories. You can contact her at arrthy.thayaparan@cbc.ca.