Gas prices soar as cap-and-trade program kicks in

Drivers are being greeted in the New Year with higher gas prices.

They went up almost 5 cents overnight Sunday at many stations around the city and across the Greater Toronto Area to 115.9 per litre.

The Liberal government's cap-and-trade program went into effect on January 1.

The goal is to reduce greenhouse gas emissions and help businesses and consumers adapt to a low-carbon economy.

But that is driving up the cost of gas and heat.

In Ontario, the price of gasoline was expected to go up 4.3 cents per litre and increase the cost of home heating by up to $6.70 a month.