Gas Prices Will Rise - and are not expected to be lower as long as the Stand Off with Iran continues

Dan McTeague, president of Canadians for Affordable Energy, .is telling people to Buckle Up and Get Ready.

The upcoming gas price increases follow peace talks between Iran and the United States appearing to fall apart. Global oil prices increased on energy markets after Iran reportedly withdrew from talks with the U.S. after Israel expanded its incursion into neighbouring Lebanon.

How much are prices rising?

McTeague said after energy markets closed Tuesday afternoon to offer his prediction for Ontario gasoline and diesel prices.

What happens with energy markets is reflected at the pumps two days later.

McTeague anticipates gasoline prices will increase by eight cents per litre Wednesday and another two cents on Thursday.

As for diesel, he expects prices to rise by seven cents per litre on Wednesday and then two cents on Thursday.

Oil prices could stay high for a long time

McTeague doubts the numerous announcements coming from U.S. President Donald Trump’s administration that a peace deal with Iran was imminent had any truth to them.

“It’s likely these talks aren’t going well and haven’t been going well for a very long time,” he said.

If the administration had been misleading the public to keep a lid on prices, it could eventually hurt the public even more.

He said the longer the war continues and the Strait of Hormuz stays closed, the higher prices will rise and the longer they’ll stay high.

He worries the ongoing situation could even lead to allocation or rationing of oil.

“We don’t have limitless reserves,” he said.

Hundreds of ships cannot leave or enter due to the stranglehold the Iranians have on the Straits of Hormuz.

Why did the war in Iran increase gas prices here?

Gasoline and diesel prices have climbed since the U.S. and Israel launched an attack on Iran on Feb. 28.

Iran has retaliated against Middle Eastern countries that house U.S. troops and attacked shipping vessels in the Strait of Hormuz, the only sea passage from the Persian Gulf.

According to the International Energy Agency, about 25 per cent of the world’s seaborne oil trade passes through the strait, as well as 19 per cent of liquefied natural gas.

The U.S. retaliated against Iran’s blockade of the strait by launching its own blockade of Iranian vessels and ports.

The 6 p.m. rule: expert tips to save on gas in the GTA

McTeague reminds drivers to wait until the evening to buy gas, as stations reduce their profit margins at those times. “Never buy your gas before 6 p.m. in the GTA,” he said.

Prices tend to be lower outside the Greater Toronto Area and major cities, so it’s best to fill up out of town if you’re heading out of the city.