Gas Prices Surge Across Canada as Iran Conflict Fuels Global Oil Concerns
OTTAWA, Ontario – Canadians are facing significantly higher prices at the pump as the conflict in Iran continues to disrupt global oil supplies. The national average for regular gasoline is nearing $1.70 a litre, a substantial increase from approximately $1.28 a month ago, according to the Canadian Automobile Association (CAA).
The price hikes are impacting household budgets, with the average passenger vehicle owner now paying an estimated $20 to $25 more per fill-up. Regional variations are stark, with British Columbia experiencing some of the highest prices and Alberta among the lowest. As of Thursday, prices across the country include:
- Alberta – $1.582
- Saskatchewan – $1.585
- Manitoba – $1.614
- New Brunswick – $1.653
- Ontario – $1.66
- Nova Scotia – $1.70
- Newfoundland – $1.78
- Quebec – $1.794
- Prince Edward Island – $1.807
- Northwest Territories – $1.848
- British Columbia – $1.923
The escalating tensions in the Middle East are the primary driver behind the surge, according to Patrick De Haan, a petroleum analyst at GasBuddy. “For the bulk of Canada over the last week, 85 per cent of the reason is still what’s happening between Iran and the United States and the escalations in the Middle East,” De Haan stated.
Concerns center on the Strait of Hormuz, a critical waterway for global oil transport, which has been effectively blocked due to threats from Iran against oil tankers linked to the U.S. and Israel. This disruption threatens to constrict the global oil supply, pushing prices upward. Crude oil prices have risen to around US$100 a barrel, a significant jump from US$64 prior to the recent strikes on Iran.
Canada’s Defence Minister David McGuinty confirmed Tuesday that the country had no intention of joining the U.S. and Israel’s military attacks on Iran, a decision that was “clear from the beginning” of the conflict. Canada was also not consulted on the strikes, according to a statement from the Canadian foreign minister.
Beyond the geopolitical factors, seasonal trends are also contributing to the price increases. Refinery maintenance and increased demand during warmer months typically add five to 15 cents per litre, De Haan explained.
Consumers are advised to shop around for the best prices and adopt fuel-efficient driving habits, such as reducing acceleration and maintaining moderate speeds, to mitigate the impact on their wallets.
De Haan suggests that a stabilization of oil prices will depend on a balance between global supply and demand. “If demand does start to come down enough to better match that 80 million barrels a day that’s being supplied, that is where oil prices will eventually stall out,” he said.
The rising cost of fuel adds to the growing concerns about the cost of living for Canadians, highlighting the interconnectedness of global events and domestic economic pressures.
