GTA gas prices plunge by 20 cents per litre. Here is where they could go from here

A sign advertising gas prices following a 20 cent per litre drop is shown in Toronto on April 1. (Mike Nguyen)

Torontonians are waking up to some of the lowest gas prices they have seen in years following the elimination of the consumer tax on carbon as of April 1.

The average price of a litre of gas in the GTA fell by 19.9 cents at midnight to 136.9 cents, according to industry analyst Dan McTeague.

The last time that gas prices were that low was in December, 2022 when the price of gas briefly fell to 135.9 per litre.

McTeague says that there could be more good news on tap for drivers too, as the beginning of April tends to be around the time of the year when gas stations compete harder for market share.

“We often see the situation where around this time gas stations tend to shed what is called the retail margin. So $1.56 per litre (before the end of the tax) may have become $1.48 or $1.47 (per litre). So it is theoretical that in 24 hours from now, you could see gas prices as low as $1.28 (per litre),” McTeague told CP24 on Monday night.

The consumer tax on carbon translated into 17.6 per litre on gasoline but was near 20 cents per litre in Ontario once the HST was factored in.

McTeague said that gas prices will rise by 6.3 cents per litre in mid-April with the annual switchover to the more expensive summer blend of fuel.

But he said that even with that rise, prices will still likely be a lot more appealing than this time last year when GTA residents were paying 159.9 cents per litre on average.

On Tuesday morning CTV News Toronto spoke with several Torontonians at the pumps, who expressed relief at the sudden drop in price.

“I thought I was dreaming,” driver Carol McKennon said. “I was just driving along and I saw a Shell (station) at $1.36 (per litre) and I thought there was a mistake and then I saw all the other gas stations at $1.36 so that’s why I’m here.”

“I think it’s amazing,” another driver, Bill Aldofsen, said. “Saving 15 to 20 cents (per litre) every week is going to make a big difference when it comes to putting food on the table. So I love it.”

The final Canada Carbon Rebate will be issued starting on April 22 to taxpayers who file their returns before Wednesday. Those who file later will get the rebate once their return has been assessed.