Fuel prices in Canada have surged this week due to escalating tensions in the Middle East. As of Friday, the average retail price in Canada reached 150 cents per litre, a significant increase from the previous week’s 133.4 cents per litre. British Columbia recorded the highest prices at 168.6 cents per litre.
The spike in prices follows recent military actions between Israel, the United States, and Iran, leading to retaliatory strikes and significant casualties. The conflict has also disrupted oil tanker traffic in the vital Strait of Hormuz, a key passage for global oil transportation.
Benchmark crude oil prices in the U.S. hit a two-year high, surpassing $90 US per barrel for the first time since October 2023. Despite concerns, there have been no reported fuel supply disruptions affecting Canada or the United States due to their significant domestic oil production.
Experts anticipate that these elevated fuel prices may persist for several weeks, even if the conflict resolves in the near term. Warren Mabee, director of the Institute for Energy and Environmental Policy at Queen’s University, suggests that price disruptions could linger post-conflict, potentially affecting prices for a couple of months.
While it remains uncertain how high prices may escalate, Mabee predicts a moderate increase of around five to 10 per cent compared to pre-conflict levels. The impact on consumers is already evident, with individuals expressing discomfort over rising fuel costs and their impact on daily expenses.
