Fuel prices are up in Canada as the new year draws near.
The cost of a litre of gasoline will rise by 7.2 cents to $2.79 per litre from $2 per litne.
The increase in price will be offset by a 7.6 cent hike in the cost of diesel fuel.
The change in price is in addition to the increase in diesel prices that are set to go into effect in July.
The Canadian Association of Petroleum Producers says the new fuel prices are the biggest increases since the first full year of the new government.
It says the average price for gasoline in Canada has gone up a whopping 13.3 cents per litres since the beginning of the year, the biggest increase since the spring of 2017.
The CAPP says it expects a further increase in fuel prices to occur as of mid-October, as the country’s oil production levels decline.
That could mean the price of gas will also increase in some parts of the country.
But as of now, the average cost of gas in Ontario and Quebec is still $1.75 a litne, according to Statistics Canada.
Prices in Alberta, Saskatchewan and Manitoba are unchanged.
The biggest increase in prices has been seen in the northern provinces, where prices are expected to increase by 7 per cent.
New Brunswick and Nova Scotia are the only provinces to see their prices increase, according the CAP.
The Ontario-based CPA, which represents the oil industry, says that with the government announcing a $3.9-billion plan to ramp up production, oil prices are poised to rise by up to 40 per cent in the next year.
The company says it is expecting a “significant” increase in oil prices in the second half of the decade, and that could have an impact on the overall economy.
The price of oil is expected to rise even more this year, as oil production picks up in the United States.
The Organization of the Petroleum Exporting Countries (OPEC) is looking to pump more oil into the market in order to keep prices in check.
The U.S. is the world’s biggest oil producer, and with the production of oil in Canada at a record low, many are concerned that Canada is going to struggle to keep up with the rising demand.
The average price of crude oil is currently around $45 per barrel, and in June, the price was $35.5 per barrel.
The International Monetary Fund says Canada’s oil market is now “very vulnerable to oversupply and price volatility.”
“It is unclear whether OPEC’s target of 3m barrels a day (by 2020) is achievable,” the IMF said.
“A rapid and sustained increase in production will be needed to prevent the global supply from overheating and a sharp fall in prices.”
But in a recent interview with CBC News, Conservative MP John Baird said that the price hike is a sign that Canada can and should increase its production to meet the countrys needs.
“What’s happening here is that we have an oil and gas industry that has become more efficient over the last couple of decades,” Baird said.
“So when I see that price increase, that’s when I think, ‘Oh my gosh, we have got to start growing our own production.'”
The government has said it will spend $1 billion on boosting production, and Baird says that is a good start.
“We need to grow our own oil and natural gas,” he said.
But he said that will take time.
“In order to do that, we need to see the oil price come down.
We need to find new markets, new ways to bring in oil and other minerals that we haven’t been able to do yet.”
Baird is part of a Conservative caucus that supports the creation of a new industry in Ontario, which is also home to one of the worlds largest oil sands deposits.