Ontario drivers may want to hold off on filling their tanks for a few days as gasoline and diesel prices are expected to drop significantly. Energy analysts say fuel costs at the pump could decline later this week as global oil markets begin to stabilize after recent volatility linked to tensions in the Middle East. According to energy analyst Dan McTeague, gasoline prices in Ontario could fall by about eight cents per litre by Thursday, while diesel prices may drop by roughly 12 cents per litre. Because changes in global oil markets usually take about two days to appear at gas stations, the recent decline in crude prices is expected to be reflected in lower pump prices later this week.
The recent surge in fuel costs was triggered by escalating conflict involving the United States and Israel against Iran at the end of February, which caused global oil prices to spike sharply. Iran’s retaliatory actions targeting energy infrastructure and shipping routes in the region raised fears of supply disruptions, particularly in the Strait of Hormuz, a critical corridor through which a large portion of the world’s oil supply passes. Those developments pushed gasoline and diesel prices higher across Canada and other countries despite Canada producing its own oil.
However, markets have recently shown signs of easing after signals from U.S. President Donald Trump that the conflict could soon come to an end, calming concerns about long-term supply disruptions. Analysts say the shift in market sentiment is helping push oil prices downward again, which should gradually translate into lower costs at gas stations. McTeague expects the price relief to continue beyond Thursday, predicting additional drops could occur on Friday and possibly again over the weekend if market trends hold.
Experts also recommend a few strategies for drivers hoping to save money at the pump. Filling up in the evening can sometimes result in lower prices because stations tend to reduce their profit margins later in the day, while fuel is often cheaper outside large urban centres such as the Greater Toronto Area. With prices expected to decline in the coming days, analysts say waiting a little longer before refuelling could help motorists save a noticeable amount on their next trip to the gas station.