Gas prices in Canada are on the decline as a result of the seasonal transition. Earlier this week, the national average price reached 194.5 cents per litre but has now dropped to 186.9 cents per litre. The shift in gas prices is a common pattern, with costs typically rising in the summer and falling in the fall due to the switch from summer-blend to winter-blend gasoline. This adjustment is made to enhance engine performance in colder temperatures and prevent fuel-line freezing.
According to Dan McTeague, president of Canadians for Affordable Energy, there may be a further decrease in gas prices over the weekend before stabilizing. However, McTeague noted that unless there is a significant increase in oil, diesel, jet fuel, and gasoline supply globally, the current price drop may be the best consumers can expect.
On the other hand, tensions in the Middle East have disrupted oil flow, leading to a surge in oil prices. The cost of Brent crude oil has surpassed $100 per barrel and is currently around $104. Despite the drop in gas prices, diesel prices have been escalating. The average cost of diesel in Canada stands at $2.751 per litre, with variations across cities such as Calgary at $2.513 and Vancouver exceeding $3 per litre.
Experts warn that the rising diesel prices could impact consumers beyond just drivers. As trucks and tractors, essential for transporting goods and harvesting food, rely heavily on diesel, the increased fuel costs may be passed on to consumers in the form of higher prices for goods. Tej Dulat from the Canada Truck Operators Association highlighted the potential impact on grocery prices due to the diesel price surge.