Diesel Fuel Costs to Drive Up Grocery Prices in Canada This Fall

Canadian grocery prices are expected to rise again this fall and possibly into 2027 due to record-high diesel fuel costs, according to experts. The increasing cost of diesel is causing a 'perfect storm' of supply shocks, including global conflicts disrupting oil exports and a potential commodity supercycle pushing wheat and rice prices to multi-year peaks.

'We're in trouble,' said Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University. 'The increases we've seen of late will impact several food categories.'

Diesel prices affect everything from farming equipment to municipal infrastructure and transportation costs.

Experts warn that Canadians should pay attention to diesel prices because they have a ripple effect on the entire economy, affecting the cost of food, housing, and other essential goods. 'Nothing gets touched in this country or anywhere around the world without some degree of movement by diesel,' said Dan McTeague, head of Canadians for Affordable Energy.