Canadian gas prices expected to increase next week

GasBuddy, the only company connecting drivers with their Perfect Pit Stop, today reports average gas prices in Canada have risen 20 cents per litre since January, leaving the average motorist to pay an extra $9 per fill-up. There’s no joke about it, but the pinch will get worse in four provinces on April 1st due to new carbon taxes, leading to another jolt at the pump just in time for summer.

“Gas prices are in the midst of their seasonal surge as we begin the switchover from winter to more expensive summer fuel and already average prices have jumped nearly 20 cents per litre, but the bumpy road will be getting worse. The start of the month marks the first day of Ottawa’s carbon tax fee on gasoline, diesel and heating fuels in Ontario, New Brunswick, Manitoba and Saskatchewan. In addition, British Columbia will be adding 1 cent to its current carbon tax for a total carbon levy of over 9 cents per litre,” said Dan McTeague, senior petroleum analyst at GasBuddy. “It won’t be a summer to remember at the pump thanks to myriad tax increases that will cost Canadians more every fill-up.”

With HST/GST being levied on the carbon tax, gas prices will likely rise on April 1:

  • • 5.1 c/L in New Brunswick, even though price changes usually take place Thursday
  • • 5.0 c/L in Ontario
  • • 4.6 c/L in Saskatchewan
  • • 4.6 c/L in Manitoba
  • • 1.0 c/L in British Columbia

The four provinces follow Prince Edward Island, Nova Scotia, Newfoundland, who all saw a 1 c/L rise in carbon tax to start the year. McTeague reiterates his 2019 forecast from January, saying Canada will see a “wild ride at the pumps” and that consequently gas prices would “turn out to be more expensive than any year since 2014, helped in no small part by an increase in taxes and currency challenges.”

In addition to rising carbon taxes, factors pushing up gasoline prices so far this year include a 35% rise in the price of oil since Christmas and a weaker Loonie in comparison to the U.S. dollar. McTeague forecasts that gas prices are likely to continue rising before peaking in early summer.

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