Drivers can expect gas prices to remain high over the summer, with demand continuing to reach peak levels and the prospect of a gas tax break officially withdrawn.

Some motorists on Friday grumbled at the continual uptick in prices, saying it was costing them more to fill their tank than feed their families. But other drivers acknowledged that prices reflect market demand.

The oil industry has attributed price increases to maintenance and refinery problems, with two central operations in Texas and Oklahoma not producing at capacity.
(CBC)

In Vancouver, where gasbuddy.com says drivers are paying the highest prices in the country at as much as $1.309 per litre, the city transit authority has reported an increase in use of its light rail system. 

Meanwhile, Prime Minister Stephen Harper on Thursday confirmed he would not introduce a break in the gas tax, which was proposed in his 2004 election campaign.

"We've seen this before. Gas prices go up and down largely in response to international market conditions," he said in Waterloo, Ont. "The long-term trend on gas prices is up. It's going to be up because in the long-term demand is outstripping supply for hydrocarbons."

The oil industry has attributed price increases to maintenance and refinery problems, with two central operations in Texas and Oklahoma not producing at capacity. Industry analysts note that refiners typically bump up their margins in the early spring, gearing up for the summer driving months.

Harper noted his government has helped consumers by cutting the GST.

Ontario MPP calls for price increase warning system

Meanwhile, Ontario Conservative MPP Joe Tascona introduced a private member's bill Thursday that would call on gas stations in the province to warn consumers about impending hikes and justify price increases to the government.

'Hopefully by this legislation, there will be less price changes because the industry will be more sensitive to the fact that the public has a right to know.'—Joe Tascona, Ontario MPP

"If [drivers] can pump gas at a lower price and they get that advanced notice, believe me they're going appreciate that so they can at least co-ordinate their consumer spending habits," he said.

Tascona said he expects his proposed legislation, if accepted, would force the industry to be more transparent with price changes. He did not have any figures available as to how much it would cost gas stations to change their signs to provide the warnings.

"Hopefully by this legislation, there will be less price changes because the industry will be more sensitive to the fact that the public has a right to know," he said.

Ontario Premier Dalton McGuinty said the bill was worthy of debate while New Democrat Leader Howard Hampton suggested that the province should regulate prices.