The price of gas is about to jump in Ontario

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Cillian O'Brien CTVNews.ca Staff

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The price of gas is about to get a little more expensive in Ontario.

Dan McTeague, senior petroleum analyst at Gasbuddy.com, says prices will rise by 7 cents a litre beginning at midnight.

The jump at the pump is a result of refineries “deeply discounting” their gasoline by about 6 cents a litre since January,.

“North America has been seeing a glut in gasoline production throughout December and January, so it looks like we’ve come to an end here,” McTeague told CTV News Channel.

“And in one fell swoop we’ve got a 7 cents a litre increase overnight.”

Montreal is also due to see around a 4 cent net wholesale price increase, he said.

Gas stations were given notice Thursday morning that their wholesale price was going up 6.2 cents a litre in Ontario.

“There are gas stations that are going to say, ‘Hey, we’re not worried about this’, but they’re going to have to absorb a 7 cent a litre increase, including the big box stores who sell gasoline with significant volume discounts,” McTeague said.

“But still they have to reflect the 7 cent increase one way or another.”

From April, as a result of the carbon tax, there will be an increases of 5 cents per litre in New Brunswick, 4.8 cents in Ontario and 4.7 cents for Manitoba and Saskatchewan, McTeague told CTV News Channel.

Federal rules also require all gas stations start pumping summer blends of gasoline from the second week of February, which will lead to another 10 cent increase he said.

McTeague warned motorists of a volatile year at the pumps for 2020, with prices moving “much higher”.

RELATED IMAGES The tax will see five cents added to a litre of gasoline and a family of four would pay an average of $114 more per year if their furnace runs on natural gas. (File image)