Two Dollars a Litre in Vancouver
Gas prices in Vancouver hit $2.02 per litre on Monday, a threshold that typically gets Canadians' attention, and analysts say drivers should expect even higher prices before the week is out.
Across British Columbia, the provincial average stood at $1.863 per litre, while the national average was $1.64 per litre. The cheapest fuel in B.C. could be found in Creston at $1.549 per litre. Diesel in the province was tracking around $2.22 per litre.
Why Prices Are Surging
The root cause is the ongoing crisis at the Strait of Hormuz, where Iran's blockade has effectively removed about 20 per cent of global oil supply from markets. That kind of disruption to any commodity has immediate price consequences.
"Anytime you remove 20 per cent of any commodity, you're going to have elevated prices," said Matt McClain, an analyst with GasBuddy. He's forecasting "probably another five to six cents per litre for both gasoline and diesel" in the near term.
Hard Times for Trucking and Business
For individual drivers, higher gas prices are an irritant. For the trucking and transportation industries, they're potentially devastating. Mike Millian, president of the Private Motor Truck Council of Canada, said the impact is already pushing some companies toward the edge: "This is going to push some over the edge."
Diesel prices in particular are the key number for goods movement across the country, and those prices are already well above $2 per litre in B.C.
One Silver Lining: EVs
For electric vehicle owners, the pump price anxiety is someone else's problem. Doug Beckett, founder of the Prince George EV Association, said operating his electric vehicle costs him the equivalent of about 18 cents per litre. "I no longer monitor gas prices," he said.
What It Means Across Canada
The Strait of Hormuz crisis is hitting all Canadians in the wallet, from Vancouver to Ottawa to Halifax. With no clear resolution in sight, fuel costs are likely to remain elevated throughout the spring, and could keep upward pressure on inflation across the board.
Source: CBC News
