The dramatic overnight spike in gas and diesel prices for Canadians

The shock at the pumps continues for Canadians as the price of gas and diesel increased significantly overnight.

In Nova Scotia, the price of regular self-serve gasoline increased 7.1 cents in Halifax, with a new minimum price of 182.9 cents per litre. Diesel is also up in many parts of the province by 10.9 cents to a new minimum price of 246.7 cents per litre.

On P.E.I. regular gas increased by 8.2 cents per litre, now at 194.8 cents per litre and diesel climbed 13.8 cents to a new minimum price of 256.3 cents per litre.

Canadian Fuels Association VP Carol Montreuil said, the war in Iran continues to have an escalating effect on fuel prices, not just in Canada, but globally.

“When this crisis started, we were talking about the key theme, which was trying to avoid escalation,” said Montreuil. “Unfortunately, what we are seeing in the Middle East now is an escalation and this was, according to U.S. President Donald Trump, a conflict that was supposed to last a couple of weeks, but we are now past a month.”

Montreuil said with a prolonged war now feared, oil and gas markets are responding in a way that is causing consumers to spend a lot of money when they fill up their tanks.

“We are seeing it in the price of the raw materials, the price of crude and we’re seeing (it) at the pumps across the country,” said Montreuil. “Many jurisdictions in Canada are now above $1.90 a litre, and in Vancouver it’s more than two bucks a litre.”

The spike in fuel prices is having other negative impacts on the economy, that extend past daily expenses for consumers.

Halifax business owner Ray Henry, said his operating costs have increased dramatically in recent weeks.

“We are in the coffee business and the milk business because we serve a lot of lattes and these costs have gone up 35 per cent in the last six months, or so,” said Henry. “It’s unfortunate, and I’m not sure if there’s going to be an end in sight.”

Halifax commuter Jim Jackson, said he is so fed up with the price of gas, he and his wife purchased a hybrid car earlier this week to offset some of the fuel costs.

“I’m leaving my truck in the yard,” said Jackson. “We made the switch because of the economy and the fuel prices.”

Montreuil won’t make a prediction on how high gas and diesel prices could climb in Canada, but he said if fuel exports continue to be blocked in the Strait of Hormuz, he is worried this cost crisis could last months.

“The trend is not good, and it’s a direct relation with what’s happening in the Middle East right now around the Strait of Hormuz,” said Montreuil.