Ontario gas prices could be ‘all over the map’ amid substantial drop, analyst says Globalnews.ca

While some Ontario drivers may be enjoying the recent fall gas pricesAnalysts say fuel costs could be “all over the map” in the coming weeks.

On Thursday, most major cities in the province saw gas prices drop by 12 cents for Toronto, GTA, Ottawa, Hamilton, London, Barrie, Kitchener and others, averaging $1.79 a liter.

But according to Dan McTeague, president of Canadians for cheap energyGas costs could move in a different direction over the next several weeks.

“Supply generally remains tight and if anything, such a dramatic drop in prices could actually encourage people to use more of what we have,” McTeague said.

He said this could result in an “energy supercycle” or a temporary collapse in the markets.

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Petroleum analyst predicts 12 per cent per liter fall in gas prices from July 7

“Particularly those who have no basis for supply-and-demand fundamentals when making your decision are very well pushing for oil to move back up to $150 a barrel,” McTeague explained.

He added to his concerns about a possible recession.

“I think we will start to see prices stabilizing and then moving back up, especially as we gather evidence that the supply picture is much more than concerns about demand destruction as a result of these higher prices and the threat of a recession. Bad,” McTeague said.

On Friday, costs are expected to drop to $1.76 a liter in the GTA and most Ontario cities, which could be the lowest payout since April 15.

The drop in prices comes after the province’s gas tax cuts went into effect on July 1.

“It has never been more important to accomplish this and provide real relief to the Ontarians,” Premier Doug Ford said in a media release on Friday. “This gas tax cut will provide more relief for hardworking families and businesses at the pumps and put more money back in their pockets, where it belongs.”

The Ontario government cut the gas tax by 5.7 cents a liter by the end of the year.