Canada faces fuel price shock as Iran conflict and Strait of Hormuz disruptions drive costs higher

A sudden overnight spike in gasoline and diesel prices is intensifying cost pressures across Canada, as escalating conflict involving Iran continues to disrupt global energy markets.

Regular self-serve gasoline prices in Halifax, Nova Scotia, climbed by 7.1 cents, bringing the new minimum to 182.9 cents per litre. Diesel also recorded a sharp increase across much of the province, rising 10.9 cents to a new minimum of 246.7 cents per litre.

In Prince Edward Island, regular gasoline prices rose by 8.2 cents per litre, bringing the new rate to 194.8 cents per litre, while diesel surged by 13.8 cents to a minimum price of 256.3 cents per litre.


According to the CTV News website, Carol Montreuil, vice-president of the Canadian Fuels Association, said the ongoing conflict involving Iran is continuing to push fuel prices higher, not only in Canada but across global markets.

“When this crisis started, we were talking about the key theme, which was trying to avoid escalation,” said Montreuil. “Unfortunately, what we are seeing in the Middle East now is an escalation and this was, according to US President Donald Trump, a conflict that was supposed to last a couple of weeks, but we are now past a month.”

“We are seeing it in the price of the raw materials, the price of crude and we’re seeing (it) at the pumps across the country,” said Montreuil. “Many jurisdictions in Canada are now above $1.90 a litre, and in Vancouver it’s more than two bucks a litre.”

Beyond raising daily costs for consumers, the surge in fuel prices is also exerting broader strain on the economy.

According to CTV News website, Halifax business owner Ray Henry said costs have surged, with milk prices up 35 per cent in six months. “It’s unfortunate, and I’m not sure if there’s going to be an end in sight,” he said.

Montreuil declined to forecast prices, warning the crisis could last months if Strait of Hormuz disruptions continue. “The trend is not good,” he said.