Have gas prices hit their peak in Waterloo Region?

CTV’s Colton Wiens finds out what drivers can expect at the pumps as we head toward the weekend.

Drivers in southern Ontario have been keeping a close eye on the price at the pumps as gas prices rose over recent weeks, but how high could they go?

The cost of gas dropped between 13 and 14 cents between Tuesday and Wednesday in most of Waterloo Region. According to the president of Canadians for Affordable Energy the market is slowly responding to changing conditions in the Middle East.

Prices dropped when word came out that U.S. President Donald Trump’s administration was putting forward a 15-point plan to end the conflict in Iran.

“You saw President Trump’s declaration two days ago,” Dan McTeague, president of Canadians for Affordable Energy, said. “Markets yesterday, not necessarily taking that at face value. And then, this morning, finding new confidence in the fact that there might be some kind of agreement that might end this conflict, which is why, two days later, we pay the price based on the geopolitical tensions.”

• Iran rejects U.S. ceasefire plan, issues its own demands as strikes land across the Mideast

“We may have hit the height”

Prices hovered around $1.61 in Kitchener on Wednesday. McTeague said the area has likely seen the peak of how high the political tensions will cause prices to go.

“I think 178.9 at the top end,” he said. “Of course, here in Kitchener-Waterloo, we tend to drop prices three cents a litre almost immediately and then drop another four or five cents throughout the day. That’s gas stations playing with their retail margins, which are about ten cents or eleven cents or twelves cents a litre. But we may have hit the height with 189,” McTeague said.

Price hike and drop expected by the end of the week

Drivers in Waterloo Region decided to fill up on Wednesday during a brief respite.

“I’ve always assumed that it was going to be going up from here on out, so getting gas as early as possible is definitely a big priority for me,” Mike Wittman, a driver, told CTV News.

“I don’t use a lot of gas, but I’m here today because I understand it’s dropping. That’s why I’m here,” Murray Barnes said while filling up.

McTeague expects a seven cent increase at the pumps on Thursday, but he said that could be followed by a seven cent drop on Friday.

“When the price drops as it did today, guess what? You’re getting a 13 to 14 cent break that the gas station never got. So, in essence, they’re selling gasoline 13 to 14 cents cheaper than what is in their tank. In the end, it works out not great for the consumers when prices go up. Not bad for consumers when they go down,” McTeague said.

When is the best time to fill up?

If you’re desperate to save some dollars, McTeague said there is a time of day that’s best to fill up the tank.

“Never buy your gasoline before 6 p.m. Because all gas stations, to a fault, drop their retail margin by the afternoon or evening. In the morning, they have the tradesmen. They have their corporate credit cards. They don’t care what the price is. But in the afternoon, it tends to be the choosier buyers. Those of us who are trying to pinch our pennies and gasoline tends to be at least five or six cents a liter cheaper after 6 p.m.,” McTeague said.

McTeague added it’s typically not worth driving out of your community to a station with a cheaper price.

“They often come with a substantial price in other ways. When you’re going to the store, you’re paying a lot more for their beef jerky, their coffee or their water. Or you’re paying a membership,” McTeague said.