Ottawa gas prices could hit $2 a litre next week

Experts say Ottawa drivers could be paying north of $2 per litre at the pump as the war in Iran continues. CTV’s Leah Larocque reports.

Gas prices could hit $2 a litre in Ottawa next week, as refineries switch to summer-grade blend gasoline and the war in the Middle East continues.

Canadians for Affordable Energy President Dan McTeague says gas prices are expected to increase a penny on Wednesday to $1.89 a litre in Ottawa, with a bigger jump expected next week.

Speaking with CTV Your Morning Ottawa on Tuesday, McTeague said the forecast for gasoline prices is “very much up in the air,” as U.S. President Donald Trump sets a deadline for Iran to reopen the Strait of Hormuz.

• Find the lowest gas prices at the CTVNewsOttawa.ca gas price hub

“The future looks very tense. As far as not just what happens this evening if President Trump makes good on his attack on Iran and Iran’s inevitable response to neighbouring nations, that could only intensify what is now a very severe and very significant draw down in global supplies in hydrocarbons,” McTeague said.

“The problem here is, not just that we are in this position seven weeks into this, it’s that it will last a lot longer. This is a supply shortage; this is not a demand drop like we saw during COVID and for that reason, we are going to be looking at prolonged prices.”

Gasoline prices have increased more than 50 cents a litre since the start of March.

McTeague says gasoline prices are set to increase seven cents a litre in mid-April as refineries switch from winter-blend gasoline to a summer-grade blend.

“That should push us up well above the $2 range, where I believe it will remain as long as this conflict continues,” McTeague said.

“Even if the conflict were to somehow miraculously come to an end and we were to open up the choke point in the Strait of Hormuz, we are still looking at a number of nations that can no longer produce, at least in the short term, can’t get their production back online. For that reason, these prices are going to remain higher for longer.”

McTeague says the increase in gas prices is due to a “severe scarcity” of oil around the world.

“North America should be OK, but that doesn’t mean there won’t be a price implication,” he said.

“My sense is if this goes a little bit longer, you know seven or eight weeks longer could mean seven or eight weeks of recovery, meaning that these prices will remain extraordinarily elevated, very uncomfortable for most, and will have significant impacts.”

• Sign up now for daily CTV News Ottawa newsletters
• The information you need to know, sent directly to you: Download the CTV News App