Gas prices in Canada have started to decline, bringing relief to drivers. After hitting a national average of 194.5 cents per litre earlier this week, prices dropped by about eight cents overnight to 186.9 cents per litre as of Friday. This decrease is attributed to the seasonal transition from summer-blend gasoline to winter blend in mid-September. The switch in fuel blends 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 further decrease by a few cents over the weekend. However, McTeague mentions that unless there is a significant increase in oil, diesel, jet fuel, and gasoline supply in global markets, the current prices may remain stable.
On the other hand, ongoing conflicts in the Middle East, particularly the disruption of oil flow through the Strait of Hormuz and Bab al-Mandeb Strait, have led to a surge in oil prices. The price of Brent crude oil surpassed $100 per barrel last week and now hovers around $104 US.
While gas prices are dropping, diesel prices are on the rise. The average cost of diesel in Canada was $2.751 per litre as of Thursday, with variations across cities. For instance, Calgary had a lower price of $2.513 per litre, while Vancouver exceeded three dollars at $3.055 per litre.
The increase in diesel prices could impact consumers beyond just drivers. Trucks and tractors, essential for transporting consumer goods and harvesting food, primarily rely on diesel. Tej Dulat, director of government and public affairs at the Canada Truck Operators Association, warns that the rise in fuel costs may lead to higher grocery prices as companies pass on these additional expenses to consumers.