Fuel prices in Canada surged this week due to escalating tensions in the Middle East, with the average retail price hitting 150 cents per litre as of Friday, 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 hostilities between Israel, the United States, and Iran, resulting in retaliatory strikes that have claimed lives and caused widespread havoc. The conflict has disrupted oil tanker traffic in the vital Strait of Hormuz, a key passage for global oil shipments.
Benchmark crude oil prices in the U.S. soared to a two-year peak on Friday, surpassing $90 US per barrel for the first time since October 2023, as the conflict shows no signs of abating in its second week.
Despite assurances from Gasbuddy petroleum analyst Matt McClain that there are no immediate supply disruptions for Canada or the U.S., consumers expressed concern over the impact on their budgets. Many felt compelled to continue filling up their tanks despite the rising costs, with some acknowledging the strain on their finances.
Experts predict that the elevated prices may persist even after the conflict subsides, with Warren Mabee, from Queen’s University, suggesting a prolonged period of price volatility. While the extent of the price hikes remains uncertain, it is expected that gas prices could rise by five to ten percent above pre-conflict levels.