Experts concerned fuel prices will skyrocket to $3 per litre due to Middle East conflict

Much of the world’s economy is expected to feel more pain due to the global fuel crunch.

Today the price of diesel has surged to an average price of $2.33 a litre.

One gas price analyst says this is probably “the worst energy crisis” he’s seen in his lifetime.

Those behind the wheel of a transport truck, delivering goods across North America say companies are already applying surcharges to clients to help cover costly diesel fuel.

Truck driver Paul Francis not only has to use diesel to fill up the fuel tank of his heavy-duty truck, he also needs a second tank to keep his trailer cool to transport food across the GTA.

“By the time we process everything, and it goes through our system, instead of it being $1.59 a month a go, now we’re a dollar a litre more,” says Francis. “So, that’s going to be passed down to the customers.”

At this trucking fuel stop in Niagara, the price for diesel skyrocketed to just under $2.60 a litre.

A soaring number for commercial distributors tasked to deliver much needed goods across North America.

“You stop the trucks, the economy stops and store shelves go empty,” says Francis. “Everything we do in our life relies on the trucking industry.”

While most oil shipments continue to be stopped from passing through the Strait of Hormuz off Iran’s coast.

Higher price tags are applied to move products on the road for critical industries like farming, transit and manufacturing, prompting trucking companies to apply fuel surcharges – costs that eventually find their way to the consumers.

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In Canada this week, the average price of diesel has hovered around $2.33 per litre.

“The geopolitical situation, this tension has now become probably the worst energy crisis of our time, definitely in my time, more than what I witnessed in 2008,” says gas price analyst Dan McTeague.

McTeague believes at this rate, diesel prices will go beyond $3 a litre and he is concerned that prices will remain at that level.

On Thursday, the Conservative Party called on the Liberal government to provide some relief at the pumps. Leader Pierre Poilievre requested the removal of federal gas taxes which could help consumers save up to 25 cents a litre.

McTeague says if there is going to be government intervention, federal and provincial officials should use fuel tax revenue and provide rebates to Canadians.

“I would say the easy, low-hanging fruit is the federal government to acknowledge that it’s making two to three million dollars a day on these increased prices, just on the GST alone,” says McTeague. “It should consider a mechanism to rebate that to Canadians.”

This week, the Canadian truck operators association shared their concerns: they say while large size companies have mechanisms to stave off the price of diesel, smaller operators can easily be at-risk if prices become insurmountable.

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