As of Monday, the federal excise tax on fuel has been removed, dropping prices sharply in Nova Scotia.
At midnight, the provincial regulator adjusted the minimum price per litre for regular self-serve gasoline to 167.2 cents, a drop of 11.5 cents.
Diesel prices are also down by 5.7 cents to sit at 206.6 cents per litre.
The move comes after Prime Minister Mark Carney announced last week that he would remove the tax until Labour Day as a way to offer relief to Canadians as the war in Iran continues to send oil prices surging and driving up costs worldwide.
Over the weekend, oil prices climbed more than 5 per cent as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz.
The Persian Gulf waterway was closed again after Iran reversed a decision to reopen the strait, and President Donald Trump said a U.S. Navy blockade of Iranian ports would remain in effect.
On Friday, oil prices had dropped back to where they were in the early days of the war, putting the markets into positive territory heading into the weekend.
A freer flow of oil could take pressure off prices for gasoline and many other products.
With files from The Canadian Press.
