It looks like gas prices are going up for a third straight week.

News 95.7 is predicting an increase of about two cents a litre when prices are reset at midnight.

That will bring the pump price up to around $1.29 a litre for regular self-serve in metro.

However, prices aren’t expected to rise much further this summer. George Murphy of Consumers for Fair Gas Prices tells News 95.7 the global economy is still too fragile to support any major increases.

“We can’t afford high energy prices when we’re talking about trying to get an economy to recover, so there’s going to be a lot of caution when we see the numbers going up,” he said. “We know what it’s doing to consumers when you see high prices. We don’t want to see it during the very important tourism season.”

Murphy says there are encouraging signs from some economic corners, and cautionary signals from others. Housing starts in the U.S. are trending upwards, but the Bank of Canada has slightly reduced its growth forecast for 2012 and 2013.

Murphy says this week’s increase can be blamed on a slight reduction in oil and gas supply, but says he expects prices to hover around $1.30 a litre for the rest of the driving season.

“The numbers today are a little bit bearish. We’re seeing a little bit of a drawdown on gasoline inventory, but at the same time you’re starting to see refineries start to pull back on production too,” he said. “When you draw down on crude oil inventory, that’s enough to set oil prices moving up again…so a small increase coming to consumers.”

In New Brunswick, regulated prices went up 2.5 cents a litre overnight to $1.279. Diesel prices also rose 1.2 cents to $1.306.

Unregulated prices in Toronto fell nearly two cents a litre, bringing the average price in the GTA to $1.279.