Gas prices are up more than 15 cents per gallon, the biggest jump since the Great Recession.
That means you’ll pay an extra $2.65 a litre for your fuel, compared with a year ago.
But what’s the big deal?
What’s the real price?
And how do you compare?
Read moreThe big news in this month’s fuel price spike: the big spike.
The price rise comes in the midst of a massive drop in gas prices nationwide.
Gas prices fell nearly 12 per cent in February, while prices at wholesale markets rose 7.7 per cent, according to the Department of Energy and Environment (DECE).
“The fact that the price has gone up so much, it is kind of like a shock,” said Andrew Kiesecker, chief economist at the National Association of Realtors.
“It’s pretty significant.”
Gas prices in Ontario dropped $1.45 per litre on February 15, the lowest since January 2018, according the B.C. Government.
That’s about 6 per cent.
“We think it’s fair to say it was a very volatile month in terms of price fluctuations,” said Doug Morgan, chief executive officer of the Toronto-Dominion Bank.
The Ontario government cut back the price for its 1.6 million homes, and now the province has a $1 gas tax.
But the biggest price increase was in Alberta, where the average price for regular unleaded gas rose $2 per litres, while the price of diesel rose by $0.11 per litour.
The Alberta government said it was considering raising its tax.
Gasoline prices have been falling across Canada in recent years.
The average price in Ontario has dropped by $1 per litiver since the year 2000.
But even as gasoline prices have dropped, the cost of fuel has risen.
The cost of unleaded gasoline has risen by about 9.8 per cent since 2015, while diesel has risen about 13 per cent over the same time period.
A litre of gasoline costs about $1, as opposed to about $3.50 in Canada.
A gallon of diesel costs about half as much.
It’s a far cry from the days when gas was a luxury item and people used to spend it on fancy cars.
Gas is cheap today, and consumers are going to want to conserve it.
That can only be good for your car.
But it can also put a strain on your bank account.
“I think we’ll see prices go down,” said Morgan.
“But the question is what happens to the bank accounts.”
Read moreThe good news for the average consumer: gas prices are down in Alberta.
But there’s still a chance that you’ll be able to pay off your gas debt before you get to your next payment.
Morgan says that means you may have to pay more to keep your car running.
“The amount of gas you’ve paid to the gas station is the amount you’re going to be paying for the next year,” he said.
“So if you’re paying $2 for a year, then if you don’t pay it that year, the next one’s going to cost you more.”
That means you’re spending more money each year, which means the average household is going to spend more money on fuel, which will make things even more expensive.
“We’re not seeing a reduction in the gas tax that we expected in the spring,” Morgan said.
But if you pay your gas bills every month, you may be able afford to buy less gas.