Gas prices in Toronto are dropping, but a return to normal rates may take time

Canadians for Affordable Energy president Dan McTeague says ‘it could take months,’ if not longer, for oil and gas prices to drop to normal levels.

Gas prices are beginning to drop across the Greater Toronto Area but experts are warning that it could take months for prices to stabilize.

U.S. officials and Iranian officials have announced a framework agreement aimed at ending the current conflict involving the United States, Israel and Iran. U.S. President Donald Trump has ordered to halt the military blockade of the Strait of Hormuz.

What does that mean for drivers at the pump?

According to Dan MacTeague, president of Canadians for Affordable Energy, drivers in across the GTA can expect a decrease from 165 cents per litre to 161 cents per litre starting Wednesday.

In early trading, the price of brent crude oil dropped more than $4 a barrel, and benchmark crude was down more than $4.50.

According to one expert, the price of oil, currently trading at roughly US$80 per barrel, is expected to remain at that level for the foreseeable future.

“It’s probably as low as we’re going to get,” said Dan McTeague, president of Canadians for Affordable Energy, in an interview with CP24.

McTeague said several factors are contributing to higher oil prices. Many oil fields are located in regions affected by the conflict and have either suffered physical damage or been shut down prematurely.

Restarting oil production in those areas could take considerable time, he said. Oil being shipped coming through the Strait of Hormuz could take months to reach its destination.

“These things will not be measured in days or weeks or months, perhaps even years,” McTeague said.

Some gas prices at stations across the GTA are currently ranging from about 142 cents to 155 cents per litre.

• Find the lowest GTA gas prices here.

In a statement posted on X, Prime Minister Mark Carney said, “Canada welcomes the new agreement between the United States and Iran. We extend our gratitude to Pakistan, Qatar and regional partners for their indispensable roles in facilitating negotiations.”

The framework agreement also includes a peace deal involving Lebanon. The official signing ceremony will be held in Switzerland on Friday.