Rising gasoline prices expected to continue as some consumers begin shifting driving habits

Filling up at the pumps has become increasingly expensive as gas stations in Guelph have passed the $1.50 per litre mark, hitting new highs not seen since the last record-breaking prices in October of 2020.

Consumers can only expect prices to rise, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

“January and February tend to be months of the year that see very little demand and lower prices, said De Haan. “So to see such issues preventing gas prices from declining at this time of year is worrisome because more significant price increases will start naturally in March, April and May as we start to see gasoline demand rise.”

The rise, which happens due to a transition to more expensive summer gasoline and refining undergoing maintenance ahead of the driving season, tends to see prices jump anywhere from 15 cents to 20 cents per litre between winter and spring.”

“So, to add insult to injury, geopolitical tensions are inflaming the situation and we may see even higher prices come the start of the driving season,” said De Haan.

He said the increased prices can be attributed to geopolitical tensions, such as the ongoing strife in Russia, Ukraine and Kazakhstan. 

"On the heels of rising oil prices on an escalating situation in Russia and Ukraine, gasoline prices have gone up basically across the entire country and in the US as well," said De Haan.

According to GasBuddy, a user-data-driven app that aggregates gas prices in the area, the top 10 gas stations and cheap fuel prices in Guelph for regular gasoline varied on Monday morning from $1.499 to $154.9.

As for what the increased gasoline prices mean for transportation costs, De Haan said there could be an impact in costs that will impact consumers' wallets.

“It could impact food prices to a lesser degree. Now I will say food prices have escalated because the ingredients in food are commodities as well that have risen as demand has gone up to ship those more expensive commodities, fossil fuels are generally the fuel to get those products to market,” said De Haan.

“So you have kind of a double whammy not only are the components of food seeing an increase in cost, but shipping that food is going up. So, certainly, this could affect not just gasoline prices but anything that is transported by diesel or gasoline will see prices rise as well.”

The rising cost of gasoline has led to some drivers altering their outings, combining destinations to minimize their gas consumption.

Marie Novak said the rising cost of gasoline has caused her to alter her driving habits because it is becoming noticeably more expensive to drive her truck.

“I think twice and I make sure I combine stops rather than drive someplace and go home, drive someplace and go home, so I try to plan it out accordingly,” said Novak. “I’m probably going to do less driving than I already do which isn’t all that much.”

After spending $87 at the pumps, Novak departed with just 57 litres in her tank.