NS Petroleum Dependence Threatened by Global Conflicts
Nova Scotia's heavy reliance on petroleum products puts it at risk of supply disruptions and higher prices due to global conflicts.
The province gets most of its energy from refined oil, followed by electricity and natural gas. However, the Saint John refinery, which supplies Nova Scotia with fuel, relies heavily on crude oil imports from countries like Saudi Arabia and Nigeria.
In 2026, US crude oil supplied 61% of the refinery's needs, followed by Nigeria (21%) and Saudi Arabia (16%). The refinery has requested permission to use foreign-flagged vessels to ship Canadian crude oil in anticipation of potential supply disruptions.
The ongoing conflict between Iran and the US has already led to increased prices for petroleum products in Nova Scotia. Gasoline prices rose 32 cents per liter, home heating fuel prices by 73 cents per liter, and diesel prices by 93 cents per liter between January 2025 and mid-August 2026.
Experts warn that the cost of these products may not return to their 2025 levels due to a weakened Canadian dollar and ongoing global conflicts in the Middle East and Ukraine. The Strait of Hormuz, which is controlled by Iran, has been the site of several attacks on oil tankers, increasing insurance costs and potentially leading to higher prices.