With the surge in diesel prices attributed to ongoing global conflicts, the cost of fueling trucks that transport goods across Canada is at an all-time high, experts reveal, potentially impacting Canadians soon. Tej Dulat, from the Canadian Truck Operators Association, emphasized the significant impact of rising diesel costs on trucking companies, with fuel being one of their major expenses. Since the spike in prices in 2022 following the Russia-Ukraine conflict, the industry has faced tighter margins. As of the latest data, diesel prices in Canada reached $2.62 per litre, exceeding last year’s rates by over a dollar. Particularly, Vancouver saw prices soar to $2.92 per litre, while the U.S. experienced record-high diesel prices surpassing $6 US per gallon.

Amid concerns about tariffs affecting Canadian goods, experts point out that the current surge in oil prices, driven by geopolitical tensions, is having a more immediate impact. The scarcity of diesel is a significant issue, with exports from the Persian Gulf region dropping considerably. Moreover, geopolitical strains, such as Russia halting diesel exports and the closure of Canada’s largest refinery in New Brunswick, further restrict the supply. While the federal government extended the suspension of the fuel excise tax, experts warn that the relief may not be sufficient to offset the escalating costs.

Looking ahead, energy analyst Dan McTeague warns that diesel prices typically escalate during winter, indicating a potentially expensive season ahead for various industries and consumers. The impact of rising diesel costs resonates throughout the food supply chain, affecting transportation, storage, and production. Concerns mount as multiple factors, including extreme weather events disrupting harvests, converge to drive food prices upwards. Evan Fraser highlights the potential for a prolonged period of elevated food prices, especially burdening low-income Canadians in the near future.