Toronto

GTA gas prices to jump 6.5 cents overnight

Gas prices in the Greater Toronto Area are set to jump overnight Monday, with the average price going up by more than six cents a litre to an all-time high of almost $1.40.

Gas prices in the Greater Toronto Area are set to jump overnight Monday, with the average price going up by more than six cents a litre to an all-time high of almost $1.40.

News of the imminent price increase caused drivers to line up at gas stations across the city on Monday afternoon.

Former MP and gas price guru Dan McTeague told CBC News that marketplace speculation is to blame for the price jump at the pump.

CBC's Mike Wise reported on Monday that a combination of hedge funds, commodity traders and future markets are boosting the price of gas.

McTeague put some of the blame on refineries in eastern North America, saying they had boosted their profits significantly.

All told, McTeague said the $1.39 price isn’t justified as it’s about eight cents a litre above the international price of gas.

Wise also reported that unlike the price spike of 2008, the cost of crude oil isn’t to blame for this rise in gas prices.

In 2008, gasoline shot up to $1.37 a litre, but oil was trading at $140 a barrel. Crude oil closed on Monday at just over $103 a barrel.

now