Gas prices in Canada are expected to rise again, despite a temporary federal fuel tax pause, as more expensive summer fuel blends hit pumps across the country.
According to CTV News, the seasonal switch could add about 10 cents per liter to the cost of regular gasoline, largely offsetting the savings from the tax suspension.
“At this stage, it looks like we’re in for a very, very expensive summer,” said Dan McTeague, president of Canadians for Affordable Energy, in an interview with CTV.
The federal government recently announced the temporary suspension of fuel excise tax from April 20 to September 7.
The move is expected to reduce prices by about 10 cents per liter for regular gas and four cents per liter for diesel.
However, regulations require retailers to switch to summer fuel blends by mid-April. These blends replace butane, which is cheaper but contributes to pollution, making the fuel more expensive to produce.
“Canadians desperately need relief right now. But this is a drop in the bucket,” McTeague said in a recent news release.
He said that prices may rise further in the coming days. “We’re still waiting for the other shoe to drop,” he said, adding an increase of up to five cents per liter could happen.
Rising global energy costs linked to tensions in the Strait of Hormuz are also expected to keep prices higher in the summer months.
