Why GTHA drivers should fill up their gas tanks on Friday

GasBuddy’s Head of Petroleum Analysis Patrick de Haan says the dip in gas prices may only be a temporary reprieve due to the uncertainty of the Iran war.

Drivers in the Greater Toronto and Hamilton Area should fill up their gas tanks this Friday and Saturday, as prices are expected to see a big dip but analysts warn it may be temporary, an industry expert says.

Gas price analyst Dan McTeague tells CP24 that the cost of fuel will drop 13 cents a litre on Friday to an average of 173.9, while diesel will dip by 28 cents a litre to 2.05, which he said is “unheard of.”

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McTeague noted that gas prices won’t change on Saturday, while diesel could see a four-cent-a-litre increase.

“Never buy your gasoline before 6 p.m., because gas stations shed another five, six, seven cents a litre, so that $1.739 tomorrow by 6 p.m. on both Friday and Saturday could be as low as $1.67 or $1.68. And that’s a price we haven’t seen, certainly, since the early days of the war,” McTeague said.

He added that energy markets are monitoring the Iran war ceasefire negotiations before any further price movements.

“They’re taking a bit of a break and saying, well, let’s see what happens with the negotiations,” McTeague said.

“That is likely to determine where markets are going to go come Monday, and that’ll be enough to send a price signal on Wednesday. And we could either see a major drop or we could see a major increase. I’m doubting it’s going to be sort of neutral.”

The United States and Iran agreed to a two-week ceasefire on Tuesday, which led to the reopening of the Strait of Hormuz, one of the world’s busiest oil shipping routes.

Iran, however, closed the waterway a day later in response to Israel’s attacks on Lebanon.

Patrick De Haan, the head of petroleum analysis at GasBuddy, said in an interview with CP24 on Thursday that while it is nice to see prices drop, “it may not last beyond that.”

He noted that the reopening of the Strait of Hormuz may alleviate the pain at the pumps.

“This could all be temporary. So, enjoy the weekend, or at least enjoy the lower prices that are set to hit tomorrow,” he said.

“What lies beyond that really still is a function of whether or not the Strait of Hormuz is going to reopen and at what pace.”

With files from The Associated Press