Gas prices in Canada are on the decline, bringing relief to drivers. The national average price of gasoline dropped from 194.5 cents per litre to 186.9 cents per litre within a day. This decrease is attributed to the seasonal transition from summer-blend to winter-blend gasoline, which typically leads to lower prices. The winter blend is designed to enhance engine performance in cold weather conditions.
According to Dan McTeague, president of Canadians for Affordable Energy, there is a possibility of further price reductions over the weekend. However, the current drop in prices is not expected to significantly decrease unless there is a substantial increase in the global supply of oil and related fuels.
The recent surge in oil prices, with Brent crude oil surpassing $100 per barrel, is linked to conflicts in the Middle East, particularly disruptions in oil flow through the Strait of Hormuz and the Bab al-Mandeb Strait. Conversely, diesel prices in Canada have been rising, with the average cost per litre at $2.751. This increase in diesel prices could impact consumer goods’ prices, as transportation vehicles heavily rely on diesel fuel.
Experts warn that the rising diesel costs may lead to higher grocery prices as companies are likely to pass on the increased fuel expenses to consumers. This could affect various aspects of the supply chain, from the transportation of goods to the harvesting of food products.