Gas prices in Canada are decreasing as a result of the seasonal switch. After hitting a national average of 194.5 cents per liter earlier this week, prices dropped by approximately eight cents overnight to 186.9 cents per liter as of Friday. The shift in gas prices is a common trend, with costs typically rising in the summer and falling in the fall due to the transition from summer-blend gasoline to winter blend around mid-September. This change in fuel composition aims to prevent fuel-line freezing and enhance engine performance in cold weather.
According to Dan McTeague, the president of Canadians for Affordable Energy, gas prices may see a further decrease by a few cents over the weekend before stabilizing. However, McTeague noted that unless there is a significant increase in oil, diesel, jet fuel, and gasoline supply in global markets, the current drop in prices is likely the best it will get.
Meanwhile, ongoing conflicts in the Middle East have disrupted oil supply routes, leading to a surge in oil prices. The price of a barrel of Brent crude oil surpassed the $100-per-barrel mark and is now hovering around $104 US. On the other hand, diesel prices in Canada are on the rise, with the average cost per liter at $2.751 as of Thursday. While some cities like Calgary have slightly lower diesel prices at $2.513, Vancouver has surpassed the three-dollar mark, with a liter of diesel costing $3.055.
The increase in diesel prices can have widespread implications, affecting transportation costs for goods, including groceries. Trucks and tractors, which are essential for transporting and harvesting food, predominantly rely on diesel fuel. Tej Dulat, director of government and public affairs with the Canada Truck Operators Association, highlighted that the rise in fuel costs will likely be passed on to consumers, potentially leading to higher prices for consumer goods.