Drivers across Canada are in for some relief as gas prices take a dip following the seasonal shift. Earlier this week, the national average gas price peaked at 194.5 cents per litre but has since fallen by approximately eight cents overnight to 186.9 cents per litre as of Friday.
The typical pattern of gas prices rising in the summer and decreasing in the fall is attributed to the transition from summer-blend gasoline to a winter blend in mid-September. This change in fuel composition aims to prevent fuel-line freezing and optimize engine performance in colder temperatures, as explained by Dan McTeague, president of Canadians for Affordable Energy.
McTeague projects a further slight decrease in gas prices over the weekend before stabilizing. However, he notes that the current decline may be limited unless there is a significant increase in oil, diesel, jet fuel, and gasoline supply globally.
The ongoing conflicts in the Middle East, particularly the disruptions in oil flow through the Strait of Hormuz and Bab al-Mandeb Strait, have led to a surge in oil prices. The cost of Brent crude oil surpassed $100 per barrel recently and is currently hovering around $104 US.
In contrast, diesel prices are on the rise in Canada, with the average cost per litre reaching $2.751 as of Thursday, according to Natural Resources Canada. Certain cities like Calgary have slightly lower diesel prices at $2.513, while Vancouver exceeds the three-dollar mark, with diesel priced at $3.055 per litre.
The escalating diesel costs have broader implications beyond drivers, affecting transportation of consumer goods and food production. As trucks and tractors heavily rely on diesel, consumers may soon experience higher prices on various products due to the necessity for companies to offset increased fuel expenses.
Tej Dulat, director of government and public affairs with the Canada Truck Operators Association, emphasized the potential impact on grocery prices as companies may need to transfer the elevated fuel costs to consumers.