Gas prices in Canada are on the decline, bringing relief to drivers due to seasonal changes. Earlier this week, gas prices surged to an average of 194.5 cents per litre but have since dropped by around eight cents overnight to 186.9 cents per litre as of Friday. This shift is attributed to the transition from summer-blend gasoline to winter blend in mid-September, a move aimed at preventing fuel-line freezing and optimizing engine performance in colder temperatures, as explained by Dan McTeague, president of Canadians for Affordable Energy.
McTeague predicts that gas prices may decrease by a few more cents over the weekend before stabilizing. However, he notes that significant price drops are unlikely unless there is a substantial increase in oil, diesel, jet fuel, and gasoline supply globally. The ongoing conflict in the Middle East, particularly the disruption of oil flow due to the closure of the Strait of Hormuz and challenges in the Bab al-Mandeb Strait, has led to a surge in oil prices, with Brent crude oil surpassing $100 per barrel and currently hovering around $104 US.
While gas prices are decreasing, diesel prices are soaring across Canada. The average cost of diesel stood at $2.751 per litre as of Thursday, with variations in different cities like Calgary ($2.513) and Vancouver ($3.055). This spike in diesel prices has repercussions beyond just drivers, affecting the cost of goods due to the reliance on diesel-powered trucks and machinery for transportation and agriculture. Experts warn that consumers may soon feel the impact of higher diesel prices reflected in grocery prices, as companies are likely to pass on the increased fuel costs to consumers.
The fluctuation in fuel prices, driven by seasonal changes and geopolitical factors, is expected to continue shaping the economic landscape for both drivers and consumers in the coming weeks.
