A sudden jump in gasoline and diesel prices overnight is exacerbating cost pressures across Canada as the escalating conflict with Iran continues to disrupt global energy markets.
Regular self-service gasoline prices in Halifax, Nova Scotia increased 7.1 cents to the new minimum of 182.9 cents per liter. Diesel also saw a sharp increase across much of the province, rising 10.9 cents to a new low of 246.7 cents per liter.
In Prince Edward Island, regular gasoline prices rose 8.2 cents per liter, making the new price 194.8 cents per liter, while diesel rose 13.8 cents to a floor price of 256.3 cents per liter.
According to the CTV News website, Carol Montreuil, vice-president of the Canadian Fuels Association, said the ongoing conflict with Iran continues to drive up fuel prices not only in Canada but in global markets.
“When this crisis began, we talked about the key issue, which was trying to avoid escalation,” Montreuil said. “Unfortunately, we are currently experiencing an escalation in the Middle East and, according to US President Donald Trump, this was a conflict that was supposed to last a few weeks, but now a month has passed.”
Live events
“We see it in the price of raw materials, in the price of crude oil and we see it at the gas pumps across the country,” Montreuil said. “Many jurisdictions in Canada are now over $1.90 per liter, and in Vancouver it’s over $2 per liter.”
The rise in fuel prices not only increases daily costs for consumers, but also puts a strain on the economy as a whole. According to the CTV News website, Halifax business owner Ray Henry said costs have risen sharply and milk prices have risen 35 percent in six months. “It’s unfortunate and I’m not sure there’s an end in sight,” he said.
Montreuil declined to provide a price forecast and warned that the crisis could last months if disruptions in the Strait of Hormuz continue. “The trend is not good,” he said.