Canadian drivers at the pump are facing even higher gas prices Wednesday after the morning’s national average ticked up to $1.91 per litre, more than two cents higher than the day before.
According to GasBuddy, British Columbia had the highest prices in Canada on Wednesday morning, reaching an average of $2.12 per litre of gas. Newfoundland and Labrador was close behind at $2.05. Even in Alberta, where prices are generally lower compared to other provinces, a litre of fuel cost $1.81.
The increased prices are due in part to what the director of the International Energy Agency called the “largest energy crisis in history.”
Tankers shipping oil through the critical Strait of Hormuz artery have been largely blocked since the beginning of the Iran war, reducing worldwide supply.
Tankers in the strait have been subject to a patchwork of on again, off again blockades enforced by Iran and the United States. U.S. President Donald Trump, who had previously said American forces would guide stranded vessels out of the corridor, paused that effort Tuesday night pending a deal with Iran.
He said the move was based on requests from Pakistan, which is hosting negotiations between the two countries, and others. The U.S. blockade on Iranian ports would continue, Trump added.
Canadians for Affordable Energy president Dan McTeague predicted the price will fall a few cents by Thursday if markets hold. Oil prices eased during Tuesday trading. He warned, however, that the national $2-per-litre threshold is “likely just around the corner.”
Roger McKnight, chief petroleum analyst for En-Pro International, said it could go even higher, though it’s difficult to speculate.
“I thought $2 was it. It could be $2.25, I’m not sure. But it really depends on the political gyrations that are going on with the Strait of Hormuz.”
“When you take 20 million barrels of crude off the market, that’s pretty severe,” he added. Even if negotiators reach a deal to reopen the strait, McKnight said it could take two months for prices to stabilize and come down.
‘We did our part’: finance minister
Canadians pay a variety of taxes on top of the baseline cost of fuel. In April, the federal government suspended the excise tax on gasoline, diesel, and aviation fuels until Sept. 7.
It was previously at 10 cents per litre of gas, and four cents per litre of diesel and aviation fuel.
But Canadians who spoke to CTV News said they felt the tax holiday had been largely eclipsed by rocketing prices.
“On the gas side, we did our part,” said Finance Minister François-Philippe Champagne during an interview with CTV Your Morning on Wednesday.
“So, there’s no more relief coming from your end?” pressed host Anne-Marie Mediwake.
“I would say, we were targeted. We were very specific. I just want to say, if you look at the taxes on gas, there’s a lot the province also could be looking at.”
Provinces charge varying amounts of tax on fuel as part of harmonized sales taxes (HST), provincial sales tax (PST) and the Quebec sales tax (QST).
- How much does your province charge? Here’s a full list.
British Columbia has some of the highest fuel taxes in the country. The drivers in the Vancouver area pay 27 cents per litre, for example.
More details to come.
