Mississauga motorists are bracing themselves for another case of sticker shock at the gas pumps today.
Several sources are indicating that gas prices could jump by as much as 4.5 cents per litre, breaking the $1.40 barrier.
In late March, Canadian gas prices were the highest since mid-2008. We were paying 11 cents a litre more than were at the same time last year, according to the Ministry of Natural Resources.
"(Today's price him is) probably the biggest increase I've seen since Hurricane Katrina when things went completely crazy," said En-Pro International Inc. analyst Roger McKnight. "And there's no end in sight."
McKnight said he anticipated prices would continue to rise this month beyond $1.40 a litre to peak at somewhere between $1.43 and $1.47 cents per litre.
The website tomorrowsgaspricetoday.com also predicted a "dramatic increase" in prices at the pumps today, with stations across the Greater Toronto Area expected to see a 4.5 cent per litre jump.
Gas prices typically spike in early spring as driving season kicks into gear and refineries reformulate gasoline for the summer months.
McKnight attributes the predicted increase to a lead Ontario supplier's decision to increase wholesale prices by 4 cents - which translates to a 4.5 cent increase at the pump with harmonized sales tax included.
"Somebody's the leader and everybody else follows," he said. "And a certain leader in Ontario is boosting their wholesale prices."
He also pointed to a confluence of forces that have kept prices at a higher-than-average rate so far this year — the growing demand for crude oil, a shortage of refining capacity in the United States after several refineries shut down in recent months, decreasing imports of oil to the U.S. and political instability in the Middle East, for example.
Dustin Coupal, cofounder of gasbuddy.com, said those forces have been reflected in rising prices at gas pumps across Canada.
Coupal said he expected that motorists will see "a bit of short-term relief" in terms of gas prices after the long weekend.
"But we haven't seen the highest prices of the year yet," he said.
Consumer frustration over rising gas prices has generated an email petition calling on motorists to boycott two of Canada's major fuel companies — Esso and Petro Canada — starting May 1.
The goal of the boycott, according to the email, is to force the companies to drop their prices down to $1 per litre.
McKnight, who previously worked in senior management roles at Texaco and Esso, called the two-supplier boycott plan "a great idea."
"That's the way to do it," he said. "That will force them to lower their prices and everybody else will follow."
