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Toronto Gas Prices to Hit Two-Year High Following Massive Weekend Surge
Toronto and GTA gas prices are set to rise 5 cents to 175.9 cents per litre this Sunday, marking a 40-cent increase this month amid Middle East tensions.
Rising Costs at the Pump
Drivers in Toronto and the Greater Toronto Area (GTA) are bracing for another significant financial hit as gasoline prices are projected to climb by five cents this Sunday. According to Roger McKnight, chief petroleum analyst with En-Pro, the price at the pumps is expected to reach 175.9 cents per litre across most stations in the region. This latest hike brings fuel costs within reach of a two-year record, nearing the 178.9 cents per litre peak observed in April 2024.
A Volatile Month for Motorists
The upcoming increase marks a staggering trend for the month of April. Including Sunday’s projected spike, the price of gasoline has risen by a total of 40 cents since the beginning of the month. This rapid escalation has caught many industry observers off guard, as traditional pricing models appear to be breaking down. McKnight noted that pump prices, which typically follow wholesale changes with a 24-hour delay, are now moving outside of standard parameters, indicating a decoupling from historical pricing rules.
Global Geopolitical Tensions Drive Energy Markets
The primary driver behind the domestic price surge is the escalating conflict in the Middle East. Global oil prices have seen extreme volatility following missile exchanges between Israel, the United States, and Iran. The instability has directly impacted the Strait of Hormuz, a critical maritime corridor through which approximately 20 per cent of the world’s oil supply passes. Reports of Iran blocking or attacking shipments in the strait have sent shockwaves through international energy markets.
Market Outlook and Crude Benchmarks
The price of Brent crude, the international benchmark, has reflected this instability, swinging from $70 per barrel to as high as $119.50 earlier this week. As of Friday’s close, Brent crude sat at $112.19 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, settled at $98.32. For GTA residents, these global shifts translate to immediate pain at the pump, with little indication that prices will stabilize in the near term as geopolitical uncertainty persists.