The roller-coaster ride at the gas pumps is set to continue this weekend, with prices set to drop dramatically over the next several days.
En-Pro tells CityNews that prices are expected to drop seven cents on Sunday, to an average of 174.9 cents/litre at local GTA stations.
This follows an eight-cent hike on Saturday, tied primarily to the changeover to summer gas from the winter blend, with changes in the posted futures markets accounting for the rest.
En-Pro’s Chief Petroleum Analyst, Roger McKnight, adds that with the announcement of the temporary elimination of the 10-cent federal Fuel Excise Tax on gasoline, diesel and aviation fuels on Monday, the price at the pumps is expected to drop to 164.9 cents/litre.
The suspension in the excise tax is in response to the soaring price of oil due to the ongoing U.S.-Israel-led war on Iran and will remain in place until Labour Day.
The 17-cent drop will be the largest decline in the price at the pump this month, following a 13-cent fall back on April 10 when a ceasefire was initially announced.
McKnight adds that prices are currently being “dramatically affected” by the war and the headlines that drive speculation and push prices up or down, “depending on the rumour flavour of the day.”
It’s uncertain what effect news that Iran has reversed its reopening of the strait will have on future pricing, with the confusion threatening to deepen the energy crisis roiling the global economy.
Oil prices reverted to where they were in the early days of the Iran war on Friday. Brent crude, the international standard, fell 9.1 per cent to settle at $90.38 per barrel, remaining above its $70 price from before the war, indicating some caution is still embedded in financial markets.
