The price of gas and gasoline in Canada continues to rise and is breaking records in some provinces
Canada's inflationary problems are getting worse. The country expects food prices to rise by 30-35%.
The first fuel price increase in Canada was recorded earlier this year. Experts say that geopolitical tensions are behind the recent increase and that the price will only continue to rise.
The tensions between Russia and Ukraine have caused "the market to be on edge because gasoline and crude stocks are quite low," said Al Salazar, vice president of exploration at the energy analyst firm Enverus.
Diesel prices at Ontario were up 5 cents in the first half of this week. Gas prices are expected to jump again sharply on Friday. It is projected to rise to $1.71 CAD per gallon.
"It's a price we've never seen or paid here," said Dan McTigue, president of Canadians for Affordable Energy, "it's well above the record of $1.61 CAD per liter."
McThing is confident the rise won't stop there. He estimates that gas prices in the Toronto area and its suburbs will reach $1.90 CAD per liter or even $2 CAD in the coming weeks as sanctions restricting Russia's ability to export oil push crude prices to $120 USD per barrel.
At the same time, McTigue said that while gas prices always get attention, he is more concerned about the jump in diesel prices that occurred in Ontario this week.
"That's five cents more tomorrow and another seven cents more on Thursday," McTigue said.
He noted that since all the ways to bring products to market in one way or another are associated with diesel fuel, in most cases the increase in its cost will naturally lead to an increase in the price of consumer goods. As a result, food prices could rise by 30-35%, which would exacerbate Canada's inflationary problems.
Amid cost pressures, some Canadian citizens are calling on the feds to cancel the planned April 1 carbon tax increase of 11 cents. The initiative was supported by Brampton Mayor Patrick Brown, among others.
