Escalating gas prices brought on by Iran war cause some to alter spending habits

Paul Hollingsworth has more on how soaring fuel prices due to the conflict in the Middle East are causing ripple effects in other areas of spending.

As gas prices continue to climb, Alexandre Kingsbury has decided to leave his car home whenever possible.

“I do bike as much as I can, when I go to school,” said Kingsbury, who added he does not have much disposable income for travel or even a night out. “Between grocery prices, housing and gas, things have gone up.”

When Janelle Clark saw the latest prices at pumps, she knew right away a road trip vacation with her husband and three children was not a reality.

“We couldn’t afford that at all because it would be a crazy amount,” said Clark from her home in Truro, N.S. “We also have pretty expensive vehicles, and the gas is not cheap with them.”

Gas analyst Dan McTeague said the war in Iran continues to jolt fuel prices around the globe.

“Diesel is up 52 cents a litre net and gas is up 25 cents a litre right across the world,” said McTeague. He also pointed out prices in the Atlantic region are slightly cheaper compared to the rest of Canada, but still climbing to high levels. “Nova Scotia gas would have started at $1.38 per litre back on February 27 and it’s now at $1.62.”

Historically speaking, when global conflicts cause gas prices to climb, domestic tourism in Canada takes a major hit.

“With the last Gulf War, the fuel prices did spike, and we did see individual automobile traffic go down,” said tourism operator Dennis Campbell.

But there is some possible good news. During the second Gulf War, cruise ship travel increased in the Maritimes and New England.

“Research shows the increase in business was just a little over 33 per cent, resulting from the ships diverting from the Persian Gulf area during those times,” said Campbell.

As for how high these fuel prices could go if the war in Iran continues long term, McTeague said “there is no limit.”

He says bigger concerns could still lie ahead, adding that over time, the conflict could also drain the emergency oil supplies around the globe. That could cause fuel prices to spike even higher, possibly to record levels.