Gas Prices to Increase at Midnight
If you need to fill up you might want to do it Thursday.
According to our partners at Tomorrowsgaspricetoday.com says gas prices will jump 3.7 cents a litre at midnight to 130.5 cents a litre at most stations in the Greater Toronto Area.
There are several factors including a significant decline in U.S. oil inventories last week, plus there's rumour in China that the government will intervene soon to stimulate growth in that country which means more demand for oil and other commodities.
Dan McTeague of TGPT also believes there was wild speculation surrounding a very minor explosion Wednesday morning at Canada's biggest refinery, the Irving plant in Saint John, New Brunswick. It looked bad at first but production resumed by the early afternoon.
McTeague says he's not surprised that refineries used the non-incident as an excuse to increase prices.
"We've seen a lot of volatility at the pumps in the past few weeks much of it has very little to do with the fundamentals that is supply and demand and what we're seeing really is a squeeze on consumers. Some call it greed, I call it a license to basically take advantage of consumers simply because there's no competition at the wholesale level," says McTeague.
McTeague says the federal government needs to step in to keep the refineries accountable.