There will be some relief at the pumps in the GTA on Friday, according to one industry analyst, who still warns that gas prices will climb to above $2 a litre.
Dan McTeague, the president of Canadians for Affordable Energy, predicts gas prices will drop five cents a litre on Thursday and another seven cents on Friday to 183.9.
“It’s certainly better than where we might have been 72 hours ago, with pushing towards $2 a litre,” McTeague told CP24. The price at the pumps climbed to 195 cents per litre on Wednesday.
Meanwhile, diesel will drop by 13 cents a litre between Wednesday and Friday.
The seesawing price is a result of the latest development in the Middle East.
“Gas prices are based on the latest musings from rumours and organizations which have close connections to the White House, saying a peace deal might be here,” McTeague said.
“But we soon find that isn’t quite necessarily the case, and we are simply obscuring the real reality that the world is about 20 per cent short of the oil that it needs to continue operating at peak levels and responding to demand.”
U.S. President Donald Trump posted on social media Wednesday that the two-month war could soon end, and that oil and natural gas shipments disrupted by the conflict could restart, depending on Iran accepting a reported agreement.
McTeague warned that prices will continue to be volatile, and there is still a high possibility that gas will cost $2 a litre.
“There’s a real likelihood, a greater likelihood, prices are going to get right back up there and likely go well above $2 a litre. That may not happen this week, but it’s going to happen as sure as the day is somewhat bright,” he said.
McTeague noted that as long as the Strait of Hormuz, a key passageway where about a fifth of the world’s oil passes, is blocked, the global supply will continue to fall, which will drive up prices.
“It will take a lot of time to get that balance of supply and demand, which is what we had prior to March 1,” he said.
“What it means is that 2026 is going to be extraordinarily expensive, more volatility, and I suspect the longer this war goes on, the greater the likelihood the impact will see us well above $2 a litre, perhaps challenging the $2.15 which is the highest price we paid here in the GTA back on June 11, 2022.”
With files from The Associated Press
