Ontario is set to see the largest gas price increase in two years this week.
Prices will increase 14 cents a litre overnight Thursday pushing prices up from $1.66 per litre to $1.80 per litre, according to Canadians for Affordable Energy President Dan McTeague.
McTeague says Canadians can thank the government’s carbon tax of adding 20 cents per litre and a weakening Canadian dollar due to a lack of oil and gas getting to international markets through pipelines.
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“The increase is the result of a 33 cent a gallon US increase on New York markets for summer spec gasoline which happens at this time of year. In September it goes down once winter spec fuel is reintroduced,” McTeague told Now Toronto in an email statement.
Butane is cheaper and used in the winter while alkylates are more expensive and used in the summer, he added.
The price of butane per litre is supposed to increase about three cents every year until 2030, according to the Canada Revenue Agency.
The rate increases are based on global warming factors predicted by Environment and Climate Change Canada.
Uber also started charging its riders 50 cent fuel surcharges in 2022 to reduce the burden of high gas prices. However, it’s also used as an incentive for Canadian drivers to switch to electric vehicles.
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