BRAMPTON — Ontario drivers are bracing for another sharp increase at the pumps this week, as rising global oil prices continue to ripple through local fuel markets, pushing gasoline costs closer to the $2-per-litre mark.
Energy analyst Dan McTeague, president of Canadians for Affordable Energy, says gasoline prices across the GTA are expected to jump by eight cents per litre by Wednesday, bringing average morning prices to approximately 196.9 cents per litre. Diesel is also projected to rise by five cents per litre, reaching close to 218 cents.
The latest increase comes amid escalating geopolitical tensions, particularly linked to the ongoing conflict involving Iran, which has disrupted global oil supply chains. The critical Strait of Hormuz — a key passage for nearly a quarter of the world’s seaborne oil — has been at the centre of recent instability, leading to supply fears and driving up crude prices internationally.
McTeague warns that the current spike may only be the beginning, noting that Ontario drivers could see gasoline prices surpass $2 per litre within days. He pointed to tightening global supply and increasing competition for oil as major factors, describing the situation as a “battle for barrels” in a strained energy market.
Despite Canada being a major oil producer, the country is not immune to global price pressures. Much of Eastern Canada relies on refined petroleum products from the United States due to limited pipeline infrastructure, making domestic fuel prices highly sensitive to shifts in international markets and U.S. supply dynamics.
The situation has been further compounded by broader geopolitical developments, including supply disruptions and strategic responses by major global players, which continue to influence oil markets and consumer prices alike.
While prices remain volatile, McTeague advises drivers to be strategic about when and where they fill up. In the Greater Toronto Area, evening hours often offer slightly lower prices as stations reduce margins, while motorists travelling outside major urban centres may find more competitive rates.
With no immediate relief in sight, experts caution that elevated fuel costs could persist in the near term, adding pressure on household budgets and the broader economy as energy markets remain deeply tied to global conflict and supply uncertainty.