If your vehicle's gas tank is running low, today is the time to top up, as a leading industry analyst predicts gas prices will shoot back up on Wednesday. Following a week of lower gas prices, Canadians for Affordable Energy president Dan McTeague told CP24 he anticipates the average price at the pumps will rise to 177.9 cents per litre on Wednesday, and may increase another two or three cents per litre on Thursday.
Current Prices and Outlook
As of Tuesday afternoon, the average price of regular gas in Toronto was 169.9 per litre, according to Canadians for Affordable Energy's website. McTeague blamed the continuing price volatility on the war in the Middle East, in which, despite U.S. President Donald Trump's insistence that indirect talks with Iran were continuing at a "rapid pace," Tehran has said it was suspending negotiations with the U.S. The ongoing war has stalled shipping traffic along the Strait of Hormuz, which includes oil exports from Persian Gulf states.
Difficult Times Ahead
"Every time it's a talk of a deal, prices drop. We've seen it sort of happen the past about 93 days since the (Iran) war began," McTeague told CP24. "And then, like every other talk of a deal, rumour of a deal, it collapses, and when it collapses, the price has to go back up. That's simply because the world is draining rapidly reserve supplies of oil," he said. McTeague said he expects the price of gas to go up "more rapidly than I think most are comfortable with," and predicts "we are in for some very difficult times ahead."
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