Local gas stations see prices soar as conflict in Middle East intensifies

The fight between the United States, Iran and other Gulf nations has caused prices to soar at local pumps.

In the last 12 hours, in Ontario drivers likely saw at least a 6 cents per litre jump at gas stations, likely bringing prices above $1.30 per litre.

Drivers told CHCH News that they are very aware about the developments in the Middle East, and with the season currently changing, they believe gas prices will likely get worse.

The pumps are always busy during rush hour, but with a growing war across the world, drivers are likely scrambling for the best price.

Gas stations in the Hamilton area and surrounding regions saw a sharp rise in the price per litre overnight, some averaging a 6 cent jump, sending them close to $1.40 throughout the day.

WATCH MORE: Hamilton couple makes daring overland crossing to escape Middle East

The war in Iran has caused significant disruptions, as missile strikes have damaged refineries and pipelines, which some experts say could cause crude oil to rise to around $100 dollars per barrel, accelerating inflation.

“I would say it’s all related to the Strait of Hormuz, where you don’t have any energy resources moving right now,” said Gabriel Giguère, a senior policy analyst with the Montreal Economic Institute.

Analysts fear soaring global prices could likely add another 20 cents a litre at the gas pumps, and more than 10 cents on diesel, likely causing inflationary pressures in other sectors who rely on fuel.

“The impact might be higher in terms of inflation starting from April, this could have an impact on Canadian inflation as a whole,” said Giguère.

The fuel disruption adds another layer to a changing geopolitical landscape.

WATCH MORE: Israel strikes Iranian weapons factories, Iran’s retaliation disrupts energy supplies

“I say the tone at the top has changed, Canada is open for business,” said Canada’s Finance Minister François-Philippe Champagne. “We’re going to build and scale up like no one has seen before.”

One layer which includes the Carney government pledging to create new avenues to elevate its natural resource sectors, like potentially building a pipeline for diversified trade.

“You have to diversify your exportation,” said Giguère. “We might have one new pipeline, but what we need is more infrastructure and the central thing here is that the federal government doesn’t have a clue of what we need.”

While the fighting continues out in the Middle East, drivers believe the worst is yet to come, with some worried that it may go up to $2 a litre.

Heading into Thursday, starting at midnight, gas price watchers are forecasting another price jump — somewhere between 3 and 6 cents a litre.

READ MORE: Inflation eases to 2.3% in January as gas prices fall: StatCan