Global Gas Prices to Remain High Amid Ongoing Supply Shortages

Global gasoline prices are expected to remain high due to ongoing supply shortages caused by conflicts in Europe and the Middle East. According to Bank of Canada Governor Tiff Macklem, damage to worldwide refining capacity has led to gains in fuel prices.

The cost per barrel of crude oil is 'almost US$40 higher than where it has been,' said Mr. Macklem. Russia's invasion of Ukraine and the virtual halt in tanker traffic through the Strait of Hormuz due to the war in Iran have kept crude prices elevated.

In response, G7 countries announced plans to release 100 million barrels of oil, beginning with diesel, in an effort to ease fuel costs. The price of global benchmark Brent crude fell slightly after the announcement but had recovered to about US$102 a barrel by Friday afternoon.