Gas prices in Canada are falling as a result of the seasonal transition, bringing relief to drivers. After peaking earlier this week at an average of 194.5 cents per litre, prices have since dropped to 186.9 cents per litre as of Friday. This shift is a common occurrence as the switch from summer-blend gasoline to winter blend typically occurs in mid-September, as explained by Dan McTeague, president of Canadians for Affordable Energy. The adjustment in fuel composition aims to enhance engine performance in colder temperatures and prevent fuel-line freezing.
McTeague anticipates a further slight decrease in gas prices over the weekend before stabilizing. However, he notes that significant price reductions would require increased global oil, diesel, jet fuel, and gasoline supply, which is unlikely. Meanwhile, tensions in the Middle East have disrupted oil flow, leading to a surge in oil prices, with Brent crude oil surpassing $100 per barrel and currently hovering around $104 US.
Conversely, diesel prices in Canada have been on the rise, with the average cost per litre at $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 at $3.055 per litre. The escalating diesel costs could impact consumers indirectly, as diesel-powered vehicles play a crucial role in transporting goods, including groceries. Tej Dulat, director of government and public affairs at the Canada Truck Operators Association, warns that the increased fuel expenses may lead to higher prices for consumer goods, affecting overall retail prices.