Drivers across Canada could see meaningful relief at the pumps by the end of the week, as fuel prices are expected to decline significantly following easing tensions in the Middle East. Industry analyst Dan McTeague says gasoline prices will fall in two stages, beginning with a modest drop before a sharper decrease heading into the weekend.
Prices are projected to decrease by two cents per litre on Thursday, followed by a more substantial 13-cent drop on Friday, bringing the average cost to approximately 173.9 cents per litre. The expected reduction comes after Donald Trump announced a temporary two-week ceasefire agreement with Iran, easing pressure on global oil markets.
Diesel prices are also anticipated to decline, with a significant drop of 28 cents per litre expected on Friday. The decrease is particularly important for transportation and logistics sectors, as diesel fuels much of the country’s freight movement, including trucking, rail and aviation.
According to McTeague, the price drop could translate into savings of $10 to $15 per fill-up depending on vehicle size. He advised motorists who are low on fuel to purchase only minimal amounts in the short term and wait until Friday to take advantage of the lower prices.
The temporary stabilization in global energy markets has provided short-term relief, although analysts caution that prices may remain volatile depending on how geopolitical developments unfold in the coming weeks.