Some Torontonians are rethinking their driving habits as fuel prices in the Greater Toronto Area continue to climb, making leisurely transportation increasingly unaffordable.
Drivers felt some relief at the pump on Thursday after the price of gasoline per litre fell seven cents, but the break is expected to be short-lived.
“Today is the best day to buy fuel, so don’t think about it. Do it,” said former MP and fuel analyst Dan McTeague on Thursday.
McTeague predicts the price of gas could rise another six cents and hit nearly $1.60 a litre by the end of the week, with the price of diesel going up another 13 cents to almost $1.99.
“With that kind of momentum by the weekend,” McTeague said, “net increases since this all began will probably be somewhere in the order of 25 cents a litre for gasoline and about 50 cents a litre for diesel.”
While refuelling his car at a gas station near Spadina Avenue and Wellington Street, J.P. Singh said the skyrocketing cost of fuel has “been a lot.”
The rideshare driver said he clocks 200 to 300 kilometres a day, meaning he fills his tank multiple times a week.
“The middle class, the normal people, are suffering,” he said. “We are hoping for the best, but it’s not good.”
Selma Baig said gas prices are “insane.”
“We can barely afford to eat and now can barely afford to travel,” she said. “It’s awful.”
Baig manages 14 retail stores in the Golden Horseshoe and travels often for work. Though her mileage is compensated, she said the current rates don’t cover the costs. She has begun carpooling with colleagues to help combat the pain at the pump.
“We’re definitely looking at things differently,” Baig said, adding she might consider working from home more to reduce her costs.
“All leisure activities that are associated with gas are put on hold though, because we just can’t afford it.”
The cost to fill up a tank has been driven up by the ongoing U.S.-Israeli war with Iran, which has led to the blockage of the Strait of Hormuz, a crucial, Iranian-controlled global crude oil conduit.
On Thursday, Iran’s new supreme leader Mojtaba Khamenei said closing the strait should be used as leverage in the conflict.
McTeague attributed Thursday’s drop in prices to U.S. President Donald Trump’s comments that the war was nearing its end, and that he would give safe passage to vessels travelling through the Strait of Hormuz.
“Obviously that is not working very well, given that several ships have been hit,” McTeague said.
He pointed to export reductions from Qatar and reported attacks in several oil-producing states, including the United Arab Emirates, Bahrain, Saudi Arabia, Kuwait and Iraq.
A Canadian Automobile Association report points to $2 a litre as the amount at which Canadians reconsider road trips and activities.
“It’s around that threshold when many drivers become more mindful of how and when they use their vehicles,” CAA spokesperson Nadia Matos said. “Many drivers tell us that they keep a watchful eye on gas prices as they plan their trips and often drive shorter distances or factor fuel costs more heavily into their overall transportation costs.”
Jordan Lenssen, an automotive photographer in Toronto, said he hasn’t been paying much attention to gas prices because the costs get on-passed to his clients.
“What even are the gas prices right now? To be completely honest, I have no idea,” he said, while filling up his vehicle.
Lenssen said he doesn’t care if it costs a couple more dollars to fill up his tank, but if the price of gas were to jump another 20 cents per litre, he would take notice.
Sai Mer lives in Brantford and drives into Toronto twice a week to visit his sister.
“If people can’t afford their housing, I don’t think they’re going to be able to afford these gas prices,” he said. “I miss the 2020s gas prices, but I don’t think we’re going to see prices get that low anymore.”
On Wednesday, the multi-nation International Energy Agency said it had agreed to release 400 million barrels of oil from its 32 members’ stockpiles, including Canada. McTeague is skeptical the plan will bring sustainable relief.
“That’s a Band-Aid, short-term cushion that will eventually be used up,” McTeague said. “We’re already burning through those reserves and if this goes on another two or three weeks, that final layer of protection may not prevent markets from being hit with much high prices.”
Besides the decision to fill up their vehicles, McTeague said the rising price of fuel will create additional budget constraints on households.
“We’re gonna have to now face the reality of enormous headwinds,” he said. “Call it a tsunami.”
With files from The Canadian Press and the Associated Press
