A day after the latest inflation numbers suggested rising costs for nearly everything — GTA drivers got a pleasant surprise at the gas pumps on Wednesday morning.
Motorists looking to fill-up will find it costing them eight cents per litre less than the day before after a significant drop overnight. The average price at most stations is now 162.9 cents/litre, is the lowest in the city since July.null
It was only five days ago that the average price matched a yearly high of 173.9 cents/litre.
Dan McTeague, president of Canadians for Affordable Energy, tells Breakfast Television the price drop can be attributed to the change over from summer gas to winter gas. The switch means a brief reprieve in the cost to fill-up despite rising oil prices that have recently hit a 10-month high.
“In the summer, one of the additives is alkylate, a very pricy component,” he says. “During the winter, we use butane, much cheaper.”
Experts expect the price to drop another two cents on Thursday to 160.9 cents/litre, but the long-term forecast suggests the cost will start climbing again by the time October arrives.
This week’s price drop is welcome news to consumers after Statistics Canada released its latest inflation reading on Tuesday, showing the annual rate rose to four per cent in August. It marks the second consecutive month inflation has risen.
Forecasters were widely anticipating inflation to come in hotter last month due to higher gas prices. But Tuesday’s report was even more discouraging than many expected.
The latest gas prices for Toronto and the GTA can be found here.
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