Fuel Costs Climb in Canada as Middle East Tensions Roil Energy Markets
Drivers across Canada are feeling the economic impact of escalating tensions in the Middle East, with gas prices jumping in multiple regions. Analysts warn that further increases could be on the way.
What began as military strikes and retaliatory actions has raised concerns about disruptions to crude oil exports, particularly through the Strait of Hormuz – a narrow waterway that channels about 20 per cent of the world’s seaborne oil and liquefied natural gas (LNG) supplies.
Oil prices continued to rise on Tuesday in markets. The price for a barrel of Brent crude oil, the international standard, briefly rose above US$84 — a more than $10-dollar jump from when the conflict began.
Here’s a look at where gas prices are rising across Canada.
Atlantic Canada
In Atlantic Canada, motorists are waking up to overnight spikes.
In the Halifax-area, the price of regular self-serve gasoline increased by 8.9 cents. The minimum price is now 147.7 cents per litre. In Cape Breton, the new price of regular self-serve gasoline is 149.6 cents per litre.
Residents in P.E.I. are paying an increase of 6.9 cents for regular self-serve gasoline while in New Brunswick the price did not change. The maximum price remains 142.0 cents per litre.
Quebec
In Quebec, Montreal fuel experts say prices are on the upswing, though the longer-term outlook remains uncertain.
According to Essence Montreal, which tracks gas prices, the lowest price per litre in the region on Tuesday was $1.39 per litre at the Costco in Brossard, as well as the Petro-Canada on Renaissance Avenue and Esso on Curé-Labelle Boulevard in Laval.
Prices on the Island of Montreal, contrarily, have shot as high as $1.62 per litre at the Shell on Highway 25 in Anjou.
Ontario
Ontario motorists are experiencing similar price shocks. In Toronto, prices spiked overnight to $1.439 per litre.
Analysts are predicting another six-cent increase on Thursday.
In Ottawa, price of gas could increase up to nine cents over Wednesday and Thursday. Teague said gas prices could increase six cents a litre on Wednesday to $1.449 per litre, with prices jumping an additional three cents per litre on Thursday.
London residents are also feeling the pinch with local drivers saying they’ve already noticed the increase.
Price hikes began overnight and by midday Wednesday as the cost of a litre of regular gas was as high as $1.44 per litre.
Saskatchewan
In Saskatchewan, drivers are bracing for higher costs at the pump.
Gas price analyst Dan McTeague expects oil prices to continue climbing, which would further affect prices at the pumps.
“Ultimately, I think we’re headed towards an increase of $20 a barrel which would translate $0.20 a litre increase and for diesel as much as $0.35-$0.40 a litre,” McTeague told CTV News.
Calgary
Southern Alberta is also seeing a noticeable surge. In Lethbridge, gas prices jumped about 10 cents since the weekend, with the average price now sitting at $1.25 per litre.
Lethbridge’s average gas price is still lower than the Alberta average of $1.31 per litre.
With files from the Associated Press
This article was first reported by CTV News
