Ontario drivers are feeling the sting at the pump as gas prices climb back up, nearly erasing any savings they enjoyed from the recent repeal of consumer carbon pricing.

This week, gas prices linger around five cents lower than they were last year, following the carbon pricing system that added a hefty 17.6 cents per liter to costs.

However, industry experts predict a fleeting relief on September 15th, anticipating a drop of seven to eight cents per liter with the transition away from summer blended gasoline.

Dan McTeague, president of Canadians for Affordable Energy, provides a deeper look into why gas prices are soaring. In the Greater Toronto Area (GTA) and Ottawa, prices hover at around 144.9 cents per liter, while slightly lower prices can be found in places like Barrie and Hamilton.

According to McTeague, new clean fuel regulations are contributing to the price spike. The increase in ethanol, primarily sourced from corn or wheat, adds about five to six cents per liter. Alarmingly, he warns that this cost could escalate to 20 cents per liter by 2030.

While ethanol is touted for its lower carbon emissions, McTeague mentions it doesn’t burn as efficiently, leading to increased fuel consumption for many vehicles.

Moreover, the Canadian dollar's depreciation against the U.S. dollar accounts for an additional two cents per liter increase. On top of that, the wholesale gasoline price in the U.S. has surged nearly 30 cents per gallon year-over-year, translating to another 11 cents per liter for Canadians.

When you combine these factors—five cents from increased ethanol, two cents from the weaker dollar, and eleven cents from rising wholesale prices—it becomes clear that gas is now at least 18 cents per liter higher than last year, effectively wiping out the savings brought by the carbon pricing repeal.

Additionally, gas stations add another seven to nine cents per liter on top of that to maintain operations, causing prices to climb even higher.

McTeague also offers a savvy tip for drivers: "If you can, avoid filling up before 6 p.m. to save those precious cents. Gas stations tend to lower their margins in the evening, giving you a better deal if you wait."