Gas prices to rise again in the GTA as analyst warns ‘upward trajectory’ will continue

Analysts predict gas prices will rise again in the GTA tomorrow following a brief reprieve as the war in the Middle East continues. Sean Leathong reports.

Gas prices are set to rise again in the GTA following a brief reprieve and one industry analyst says there may not be an end in sight to the “upward trajectory” amid the effective closure of the world’s busiest oil shipping channel.

About 20 per cent of the global supply of oil passes through the Strait of Hormuz, but the channel has been effectively closed amid the war in the Middle East, with Iran repeatedly vowing to attack any ship that passes through.

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The price of oil has surged as a result, resulting in a steady increase in the cost of filling up in Toronto and globally.

Drivers are getting a brief reprieve Thursday after the average cost of a regular litre of gasoline fell by seven cents to 153.9 cents across the GTA.

But gas analyst Dan McTeague predicts prices will shoot back up by another six cents at midnight to an average of 159.9 cents per litre.

“The unfortunate aspect is that even though we kind of stalled a tiny amount over the past couple of days it looks as if we are going to begin an upward trajectory at the pump as early as this weekend across Canada and quite honestly beyond,” Gas Buddy Petroleum Analyst Matt McClain told CP24 on Thursday morning. “We have unfortunately more to go when it comes the price point increase across Canada. We need that Strait of Hormuz to reopen and we need it to reopen now.”

Gas prices have already risen by more than 20 cents a litre in Toronto this month due to the impacts of the war in the Middle East.

McClain said the closure of the Strait of Hormuz unfortunately continues to represent a “serious and volatile” situation that will push the price of crude oil even higher.

He said this will be the case even after the International Energy Agency – of which Canada is a member – announced plans to make 400 million barrels of oil available from its members’ emergency reserves this week.

“It does concern me that we are doing that this early on solely because we don’t seem to have a solution for getting the Straight of Hormuz reopened,” he said. “Once you run out of strategic reserves, what do you have then in order to keep things flowing if you still have not reopened the Straight of Hormuz?”