Gas prices set to spike to highest in 2 years
Simcoe Muskoka motorists are being warned to expect a significant hike in gasoline prices this week as prices rise to the highest level since August 2022.
According to Canadians for Affordable Energy president Dan McTeague, gas prices are predicted to increase 14 cents a litre at stations across the region and Ontario by midnight on Thursday.
That means motorists wanting to fill up on Thursday could do so at 179.9 cents a litre on average.
"In case anybody was counting, that's a number we haven't seen, a figure we haven't seen going back to August., 2, 2022," McTeague told CTV News on Wednesday. "These are very extraordinary events. We're seeing these prices move up dramatically as a result; I think we can expect that, certainly, inflation will be impacted by this."
This week's increase is due to the higher cost of summer-blend gasoline. The cheaper winter blend will return in the fall.
That's in addition to rising tensions in the Middle East, which are attributed to oil increases and Ottawa's rising carbon tax, which will all contribute to keeping prices at the pumps high this summer.
For motorists, the hike could have many deeper into their pockets.
However, for businesses that rely on transportation to operate, every cent hurts their bottom line.
"it is taking a major chunk of our profits for gas expenses," said Syed Haider, the owner of Barrie Courier Services. "It is challenging for us to raise the price to consumers."
Haider's business operates over 35 fleet vehicles on a 24/7 basis.
He said most of his clients are hospitals in the region, which requires drivers to travel anywhere from 400 km to 600 km per day.
Haider is meeting with his financial advisor to consider switching to electric, but he admits the upfront costs are daunting.
While he's still managing to make money, he said the demand for his services has decreased since the pandemic ended.
"They are still facing challenges," he added. "I can see figures. It is about 60 to 80 per cent that some are still down. The companies used to use us on a daily basis. Now, we have only three to five orders a month."
Craig Ellis of On Time Taxi has switched some of his vehicles to hybrid models to keep costs lower.
In total, Ellis has nine vehicles, split between his own company and as a broker with Deluxe Taxi in Barrie.
"We increased our rates last week, a small percentage of a kilometre," Ellis said.
Ellis anticipated the semi-annual hike and has factored in further gas hikes into how he raised his rates.
However, he's actively wanting to avoid putting the cost on his customers.
"We just can't keep gouging the customer," he added. "We've tapped out now."
CTVNews.ca Top Stories
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.