Turmoil in Iran, disruptions in global oil markets, and soaring gasoline prices in Canada and beyond are reminiscent of events in 1979 triggered by the Iranian Revolution. The shock to the world’s oil supply back then led to panic buying and hoarding of gas, causing a surge in oil demand.
Calgary economist Peter Tertzakian recently uncovered original proofs of gasoline rationing stamps prepared by Canada’s government in response to the crisis. Although the stamps were never circulated due to stabilized supply, they were designed to allow holders to purchase 50 liters of gas each, ensuring fair access to fuel.
Tertzakian highlighted the significance of the proofs, emphasizing that they serve as a reminder of past oil crises and the unpredictability of such situations. The current conflict in the Middle East has further heightened concerns about potential gas-saving measures.
Reflecting on historical events, Tertzakian noted parallels between the oil crises of the 1970s and present-day escalations in the Middle East. The recent attack on Iran by the U.S. and Israel has significantly impacted global gas prices, pushing oil prices above $100 US per barrel.
Several countries have already implemented gas hoarding and rationing measures in response to the crisis. While Canada has not yet enforced such actions, Tertzakian suggested that gas rationing remains a possibility given the current circumstances.
Looking back at the 1970s, when the U.S. faced gas shortages and implemented rationing systems, the impact was felt across North America. The potential for gas rationing in Canada during that era was considered but never implemented, despite the Energy Supplies Emergency Act being in place.
As Canadians grapple with rising gas prices today, Tertzakian warned of the potential for gas rationing if a physical oil shortage occurs or if global scarcity leads to exorbitant prices. Measures such as releasing oil reserves may be necessary to stabilize the situation and ensure fair access to essential commodities.
Tertzakian urged long-term strategic planning to address vulnerabilities in the face of crises, emphasizing the need for proactive measures to manage vital commodities and support global stability during challenging times.