Fuel prices in Canada have surged due to the ongoing conflict in the Middle East, with the average cost reaching 150 cents per litre as of Friday evening. This marks a significant increase from the 133.4 cents per litre recorded just a week prior. British Columbia currently has the highest prices, sitting at 168.6 cents per litre.
The spike in prices follows the recent hostilities between Israel, the United States, and Iran, resulting in retaliatory strikes and escalating tensions in the region. The conflict has led to disruptions in oil tanker traffic through the vital Strait of Hormuz, a key passageway for global oil shipments.
Benchmark crude oil prices in the U.S. have soared to a two-year high, surpassing $90 US per barrel for the first time since October 2023. Despite the turmoil, there are no immediate fuel supply disruptions anticipated in Canada or the U.S., as both countries have robust oil production capabilities.
Consumers are feeling the impact at the pump, with many expressing concerns about the rising prices. Some individuals, like Amy Gooding in the Greater Toronto Area, noted the financial strain of higher fuel costs but acknowledged the necessity of gas for daily transportation needs.
In Saint John, N.B., Bailey Jones echoed similar sentiments, resigned to the inevitability of rising prices. She anticipates further increases in the near future and doubts any immediate relief.
Experts suggest that elevated fuel prices may persist even after the conflict subsides, with potential disruptions expected to linger for several months. While the extent of the price hikes remains uncertain, analysts predict a moderate increase of around five to 10 percent compared to pre-conflict levels.
Despite concerns over escalating prices, experts believe that the current situation is unlikely to mirror the severe oil crises of the 1970s, when North American oil prices quadrupled for an extended period. However, consumers should prepare for continued fluctuations in fuel costs in the coming weeks.