Ontario Fuel Prices Dip Before Rising Amid US-Iran Conflict

Gasoline and diesel prices in Ontario are expected to fluctuate sharply this week due to global oil market instability. Dan McTeague, president of Canadians for Affordable Energy, predicted a significant price drop for Thursday, August 7, with gasoline decreasing by 12 cents per litre and diesel by 11 cents per litre. In the Greater Toronto Area, this brought morning peak prices to 158.9 cents for regular gasoline and 205.9 cents for diesel.

This brief decline followed easing oil prices driven by hopes for a ceasefire between the United States and Iran and the potential reopening of the Strait of Hormuz. However, the relief is short-lived. McTeague predicts gasoline will decrease by only one cent on Friday before rising three cents on Saturday, August 8, to reach 161.9 cents per litre in the Greater Toronto Area. Diesel is expected to fall two cents on Friday and rise four cents on Saturday to 209.9 cents per litre.

The volatility stems from an ongoing conflict that began with a February 28 attack on Iran by the United States and Israel. Subsequent Iranian retaliation and mutual blockades of the Strait of Hormuz, which handles 25% of seaborne oil trade, restricted global supplies. To maintain stability, the United States has significantly depleted its Strategic Petroleum Reserve, which experts warn is now reaching a critical low.