Gas prices jump five cents per litre in Ottawa with more increases to come: McTeague

OTTAWA -

Gas prices in the capital jumped another five cents overnight, approaching $1.40 per litre, and one expert says to expect even more prince increases through to the end of the year.

Dan McTeague, president of Canadians for Affordable Energy told CTV Morning Live's Leslie Roberts on Friday morning that the price could drop a couple of cents, but it's going right back up.

The Atlantic hurricane season is partly to blame.

"There is another storm, Ida, I believe, shutting down platforms in the U.S. Gulf Coast," McTeague said. "So, while prices may drop two cents a litre tomorrow here in Ottawa, they're going to right back up two cents a litre on Sunday and stay there at least until Wednesday."

McTeague said lower supply of oil combined with increased demand is also driving price increases.

"The reality is that post-COVID, and even with the Delta variant, people want to get back to normal and to get back to normal you need fuel," he said. "Like it or not, these prices are going to go much higher, notwithstanding things seeming to get back to normal."

McTeague says that many oil producers are not fully up and running following the pandemic. He also said OPEC, the Organization of Petroleum Exporting Countries, is "not going to produce one extra ounce of oil for America or for Canada."

Come Labour Day weekend, McTeague says he expects to see record-high prices.

"We should be peaking but that's not likely to be the case," he said. "I suspect, unless markets really change… we're likely to smash through records we haven't seen nationally since 2014 and 2008. We're likely to see records break as soon as the Labour Day period or just slightly after."

McTeague also predicted that the federal government's Clean Fuel Standard, which is scheduled to come into force at the end of 2022, could also increase prices in the coming years.

"January 1, 2023, the Clean Fuel Standard, being proposed by all parties in the House of Commons that are currently running, will add 15 cents a litre to the price of gasoline using the B.C. model," he said.