Fuel prices typically decrease this time of year, but an industry expert is cautioning that drivers should not expect relief now. Patrick De Haan, head of petroleum analysis at Gasbuddy.com, mentioned that the usual decline in gas prices post-Labour Day may not happen this year due to various factors. The spike in crude prices following the U.S. and Israel’s conflict with Iran earlier in the year disrupted tanker shipments through the Strait of Hormuz. Although prices briefly returned to pre-war levels in the summer, recent attacks in the Middle East have pushed Brent crude prices over $100, raising concerns about inflation.
De Haan highlighted that Ukrainian attacks on Russian refineries have added pressure to the market, indicating that Canadian motorists will likely face higher costs. Gasbuddy’s data shows the national average for regular unleaded gasoline in Canada has risen to just above $1.80 per liter, with further increases expected. Diesel prices, already at record highs, could climb another five to 10 cents per liter.
These cost increases are expected to impact consumers significantly as transportation costs rise. De Haan emphasized the challenges this poses for farmers who rely on diesel to harvest their crops and transport goods to market. Despite the difficulties, there are limited options to mitigate the impact of rising diesel prices in the current market conditions.