Canadian Diesel Prices Soar Amid Ongoing Global Conflicts

Diesel prices in Canada have skyrocketed to $2.62 per litre, surpassing last week's high of $2.52 and a dollar higher than this time last year. The ongoing U.S.-Israel war with Iran is driving gas prices up, and the Bank of Canada governor Tiff Macklem says there's a risk that higher energy prices could spill over into other goods soon.

For trucking companies, fuel is one of their biggest costs, as commercial trucks go through hundreds of litres every week. The industry can usually absorb brief spikes in prices, but the margins have been tighter since 2022 when Russia invaded Ukraine. Now, prices are even higher.

'End of the day, companies have to pass that cost to the consumers,' Tej Dulat, director of government and public affairs with the Canadian Truck Operators Association, said. 'You're going to see that impact coming on the grocery prices.'