Your weekend road trips are likely to cost a whole lot more this summer as the cost of gas at the pump is expected to increase next week, according to a petroleum analyst.
Since January, the average cost of gas has already risen 20 cents per litre in Canada, leaving the average motorist to pay an extra $9 per fill-up, according to GasBuddy.
But this amount is about to get steeper in certain provinces on April 1, when the new carbon tax fee on gasoline, diesel and heating fuels throughout the country kicks in.
“Gas prices are in the midst of their seasonal surge as we begin the switchover from winter to more expensive summer fuel and already average prices have jumped nearly 20 cents per litre, but the bumpy road will be getting worse,” said Dan McTeague, senior petroleum analyst at GasBuddy.
April 1 marks the first day of Ottawa’s carbon tax fee, which will affect prices in Ontario, New Brunswick, Manitoba and Saskatchewan.
Additionally, British Columbia will be adding 1 cent to its current carbon tax for a total carbon levy of over 9 cents per litre, said McTeague.
“It won’t be a summer to remember at the pump thanks to myriad tax increases that will cost Canadians more every fill-up.”
This follows Prince Edward Island, Nova Scotia, and Newfoundland, who all saw a 1 c/L rise in a carbon tax at the start the year.
In addition to rising carbon taxes, factors pushing up gasoline prices so far this year include a 35% rise in the price of oil since Christmas and a weaker Loonie in comparison to the US dollar.
McTeague forecasts that gas prices are likely to continue rising before peaking in early summer.