Diesel, gas prices continue to climb in Canada

Diesel has jumped more than six cents in Nova Scotia as the conflict between Israel and Iran sends global fuel prices soaring. Paul Hollingsworth explains.

Diesel prices in Nova Scotia have jumped again for an overall increase of 16 cents per litre in just seven days.

“That’s life and you just got to pay what you got to pay,” said diesel pick-up driver Stacey Daley, as he filled up his tank.

The cost for diesel is up across Canada, and gas prices are also climbing, with an eye-popping 18 cents per litre hike in northern Ontario with a national average increase for the past week of 5.7 cents.

It’s bad timing for traveller John Romard, who drove to Halifax from Kingston, Ont., for a vacation this week.

“I left gas prices at $1.04 a litre in Ontario” said Romard. “And I’ve been paying $1.41 since I got here, and they just went up again today.”

The ongoing conflict between Iran and Israel continues to cause market instability, which is affecting supply and demand for oil.

“For now, the trend will remain upward until there is either a halt in escalations or de-escalations,” said petroleum analyst Patrick De Haan. “I think the market may find some stability here as this has been ongoing for a week, so the market is no longer shocked by new developments.”

The diesel increase is a tough financial hit for long-haul truckers who fill up with diesel multiple times weekly.

“Oh, it is quite a bit, it can go up $300 or $400 a week easily,” said Ontario trucker Mike Fontaine.

Overall, the increase in fuels costs requires fast action by the trucking industry.

“The price of diesel typically doesn’t have the same ramifications, because it is common practice to have fuel surcharge mechanisms in place,” said Canadian Trucking Association Communications Director Marco Beghetto. “Typically, those costs are passed on.”

Beghetto said the ability to implement surcharges is mostly applied to bigger trucking companies. Smaller independent truckers often have to absorb the costs, which can be damaging to their bottom line.