Drivers across Canada are feeling the economic impact of escalating tensions in the Middle East, with gas prices jumping in multiple regions. Analysts warn that further increases could be on the way.
What began as military strikes and retaliatory actions has raised concerns about disruptions to crude oil exports, particularly through the Strait of Hormuz - a narrow waterway that channels about 20 per cent of the world’s seaborne oil and liquefied natural gas (LNG) supplies.
Oil prices continued to rise on Tuesday in markets. The price for a barrel of Brent crude oil, the international standard, briefly rose above US$84 — a more than $10-dollar jump from when the conflict began.
Here’s a look at where gas prices are rising across Canada.
Atlantic Canada
In Atlantic Canada, motorists woke up Wednesday to overnight spikes.
In the Halifax area, the price of regular self-serve gasoline increased by 8.9 cents. The minimum price was 147.7 cents per litre Wednesday morning. In Cape Breton, the new price of regular self-serve gasoline was 149.6 cents per litre.
Residents in P.E.I. saw increases of 6.9 cents for regular self-serve gasoline in some spots, while in New Brunswick the price did not change as of Wednesday morning. The maximum price remained 142 cents per litre.
Quebec
In Quebec, Montreal fuel experts said prices were on the upswing, though the longer-term outlook remains uncertain.
According to Essence Montreal, which tracks gas prices, the lowest price per litre in the region on Wednesday was $1.39 at some stations in Brossard and Laval.
Prices on the Island of Montreal shot as high as $1.62 per litre at one station in Anjou.
Ontario
Ontario motorists experienced similar price shocks Wednesday. In Toronto, prices spiked overnight to $1.439 per litre.
Analysts predicted another six-cent increase on Thursday.
In Ottawa, the price of gas could increase by as much as nine cents over Wednesday and Thursday. One expert told CTV News Ottawa that gas prices could increase six cents a litre on Wednesday to $1.449, with prices jumping an additional three cents per litre on Thursday.
London residents are also feeling the pinch. Price hikes began overnight and by midday Wednesday, the cost of a litre of regular gas was as high as $1.44.
Saskatchewan
In Saskatchewan, drivers are bracing for higher costs at the pump.
Gas price analyst Dan McTeague said he expects oil prices to continue climbing.
“Ultimately, I think we’re headed towards an increase of $20 a barrel, which would translate to a $0.20-a-litre increase, and for diesel as much as $0.35 to $0.40 a litre,” McTeague told CTV News.
Alberta
Southern Alberta is also seeing a noticeable surge. In Lethbridge, gas prices had jumped about 10 cents since the weekend, with the average price sitting Wednesday at $1.25 per litre.
Lethbridge’s average gas price is still lower than the province-wide average of $1.31 per litre.
With files from The Associated Press
