Gas prices are slowly going down – but that’s not because of Ontario Premiere Ford

Premier Ford not responsible for upcoming gas price drop

BY NEWS STAFF
POSTED AUG 16, 2018 5:45 PM EDT

After spiking to a near all-time high just a few months ago, the price of gas continues to drop. The cost of regular gasoline is set to fall again at midnight across the GTA by four cents to an average of 131.9.

But one industry insider says this has nothing to do with Premier Doug Ford’s election campaign promise to knock 10 cents per litre off the cost at the pumps.

“The provincial government has no control on the wholesale price of gasoline,” said Roger McKnight, Senior Petroleum Analyst with En-Pro International Inc.

While Ford’s Progressive Conservative government has introduced legislation to eliminate Ontario’s cap-and-trade carbon pricing program, McKnight says that impact has not yet been felt at the pumps because the bill was not passed before the legislature adjourned for the summer.

McKnight estimates the price of unleaded gas will drop by 4.2 cents a litre when the legislation comes into effect.

The cap-and-trade system aims to lower greenhouse gas emissions by putting caps on the amount of pollution companies in certain industries can emit. If they exceed those limits they must buy allowances at quarterly auctions or from other companies that come in under their limits.

680 News Business Editor Richard Southern says the upcoming drop in gas prices across the GTA has more to do with the price of oil, which fell by more than two dollars on Wednesday.

Thursday’s price decline should hold through Tuesday.