Gas prices in Toronto area reach record high; analyst warns of more hikes

Gas prices rise overnight, show no sign of slowing Gas prices rose once again overnight and Dan McTeague says geopolitical pressures will drive up the price at the pump even further.

The prices at the pumps in the Toronto area continue to break records and one industry analyst said further hikes are coming due to the ongoing crisis in Ukraine.

On Sunday, the price of gas went up 4 cents in the GTA, bringing the average to a record high of $1.60 per litre. At the beginning of 2022, the gas price in Toronto was at $1.39 per litre.

Dan McTeague, the president of Canadians for Affordable Energy, warned drivers of more gas price hikes in the coming weeks.

In addition to surging post-COVID demand for fuel, McTeague said the tense situation in Eastern Europe, with many fearing a Russian invasion of Ukraine, is also contributing to soaring prices.

"If we, in fact, see some kind of activity in Eastern Europe, then all bets are off," he said.

"That's because there would be a risk, a war premium at a time in which Russia is still the third largest producer of oil in the world behind the United States and Saudi Arabia. So this creates a very tense situation, notwithstanding what we're doing here in Canada."

On Friday, U.S. officials said a possible Russian invasion could happen at any moment.

If a war breaks out in Europe, he said, "We would see a scenario where we'd easily go to $1.75, perhaps even $2 a litre."

"Anything's possible in a world in which there is less supply in far more demand."