Diesel prices across Canada have surged to their highest level since 2022, raising concerns about rising transportation and consumer costs.
The average price of diesel has climbed to about $2.19 per litre, nearly 30 per cent higher since the war involving the United States, Israel and Iran began.
Diesel is now significantly more expensive than regular gasoline, which is averaging around $1.75 per litre at fuel stations.
Industry experts say the increase is particularly important because diesel powers much of the transportation system, including trucks, trains and ships that move goods across the country.
Higher diesel prices are already putting pressure on farmers, trucking companies and transit operators, many of whom rely heavily on diesel fuel for daily operations.
Transportation companies say the higher fuel costs will eventually be passed on to consumers through increased prices for goods and services.
Some trucking companies say the impact is immediate. Filling a large transport truck can require around 1,000 litres of diesel, making even small price increases significant.
Fuel prices vary across the country. The highest average diesel price was reported in Chicoutimi, Quebec, at about $2.49 per litre, while the lowest average price was around $1.85 per litre in Grande Prairie, Alberta.
Manufacturing groups say the rising cost of diesel is also affecting production and shipping across multiple industries.
Businesses that rely on freight transportation have already started seeing higher shipping costs, and some companies are introducing fuel surcharges to cover the increased expenses.
The price surge is linked to rising global oil prices caused by the ongoing conflict in the Middle East. Fighting in the region has disrupted energy supplies and affected shipping through the Strait of Hormuz, a key route that carries about one-fifth of the world’s oil and natural gas.
North American oil prices have jumped nearly 50 per cent since the conflict began.
Analysts warn that diesel prices could continue to rise if the conflict persists. The situation could also affect the upcoming agricultural season, as farmers depend on diesel for planting and harvesting.
Experts say higher fuel and fertilizer costs could eventually lead to higher food prices for consumers.
Energy analysts note that the war has disrupted not only crude oil production but also the export of diesel and jet fuel from the Middle East. At the same time, some refineries in Asia have reduced operations because of supply shortages, adding further pressure to global fuel markets.