Gas prices have dropped as much as 13 cents per litre so far this week, but observers are encouraging Ottawa drivers to hang on until Friday to fill up.
They forecast a more than 10-cent-per-litre slide to an average of just below 162 cents, as a detente in the Iran war may be on the horizon.
Roger McNight, energy analyst at En-Pro International, said that the plunge restores some calm following the volatile summer markets where local prices swung by up to 20 cents in July alone.
In a statement, McKnight said that gas prices “plummeted on Trump’s pronouncement that a ‘deal to open the Strait of Hormuz was almost done’. Gasoline prices fell between 10 and 18 cents a litre in celebration of this presidential decree.”
“The status of the strait has been a continuous point of shifting claims, ultimatums, and ongoing negotiations (and) this latest offering has the strength of filling a paper bag with water,” he added.
“If (Trump) and the Iranian government change their minds, yet again, then all bets are off.”
McNight’s expecting another drop of one penny or so per litre Friday.
Trump told reporters on Monday that new talks between the U.S. and Iran are the “last chance” for Iran to secure a deal and avoid an escalation of U.S. strikes on the country.
Gas prices hit $1.96 per litre in Ottawa in May due to the Middle East conflict and a strike in the Strait of Hormuz.
