Here’s when gas prices will drop 10 cents a litre in Ottawa

Gas prices in Ottawa on Wednesday, May 27. Canadians for Affordable Energy president Dan McTeague says prices will drop 10 cents a litre on Thursday. (Dylan Dyson/CTV News Ottawa)

Ottawa motorists will want to wait one more day to fill up the gas tank, with prices set to drop to their lowest level in a month.

Canadians for Affordable Energy president Dan McTeague told CP24 that gas prices will drop 10 cents a litre on Thursday in Ottawa and across Ontario to an average price of 173.9 a litre.

The drop comes after prices fell 12 cents a litre last week.

“This really has to do with headlines that are suggesting that somehow there’s going to be some kind of a peace agreement between the U.S. and Iran; that hasn’t happened,” McTeague said on Tuesday.

“But markets seem to be really amused by this, and they are willing to shed a lot of their positions.”

There were reports earlier this week that the United States could be close to reaching a deal with Iran to end the war and reopen the Strait of Hormuz.

McTeague says it will be the lowest gas prices in Ottawa and Ontario since April 24.

“That’s music to the ears for many who haven’t seen those kind of prices,” McTeague said.

Ottawa City Hall

The high cost of diesel poses a financial risk to the City of Ottawa.

A report for the finance and corporate services committee says the city’s diesel hedging program played a “critical role in mitigating this risk,” but the volatility “remains an ongoing financial risk.”

“The hedging program continues to play a key role by locking in prices for a portion of the City’s forecast fuel needs, limiting the financial impact of short-term market price spikes,” staff said.

“Fuel costs and market conditions will be closely monitored with updates provided in future quarterly financial status updates.”

The city says the diesel hedging program reduced the City of Ottawa’s diesel costs by approximately $1.9 million in the first three months of the year. Staff say the temporary suspension of the federal fuel excise tax will generate $580,000 in one-time savings this year.

With files from the Associated Press

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