Gas prices in Canada have risen 10% on average year-over-year, with nationwide fuel costs reaching $1.624 per litre, according to the latest data from Kalibrate. The increase comes amid economic concerns, fluctuating oil prices, and ongoing trade tensions between Canada and the United States.
In the past week alone (Jan. 30 – Feb. 6), gas prices increased by an average of 2 cents per litre across Canada. Some cities, such as Kelowna, B.C., Winnipeg, and Victoria, saw some of the largest spikes, while Red Deer, Alta., experienced the biggest price drop.
A year ago, the average fuel price was $1.474 per litre, demonstrating a steep increase in costs for Canadian consumers.
The surge in fuel prices comes as Canada narrowly avoided a trade war with the United States, with President Donald Trump agreeing to a 30-day pause on imposing new tariffs on Canadian exports.
However, economic experts warn that if the trade dispute escalates, gas prices could surge even higher. On Thursday, Bank of Canada Governor Tiff Macklem addressed concerns about the impact of trade tensions on Canadian businesses and consumers, stating:
“The longer this uncertainty persists, the more it will weigh on economic activity in our countries.”
With oil prices continuing to fluctuate and market uncertainty surrounding global energy demand, Canadians are advised to prepare for continued price volatility at the pump.
While prices have increased nationwide, some cities have seen sharper jumps than others.
Largest Weekly Price Increases:
- Abbotsford, B.C.: +10 cents
- Kelowna, B.C.: +9.8 cents
- Victoria, B.C.: +9 cents
- Winnipeg, MB: +9.1 cents
- Regina, SK & Saskatoon, SK: +6.8 cents
Biggest Weekly Price Drops:
- North Bay, ON: -7 cents
- Red Deer, AB: -4.8 cents
- Brantford, ON: -3.6 cents
- Peterborough, ON: -3.5 cents
- Kingston, ON: -3.4 cents
With high inflation, economic uncertainty, and potential trade tensions, industry analysts are keeping a close eye on fuel trends for the coming months.
For Canadian drivers, shopping around for the best prices, monitoring fuel efficiency, and staying informed on economic policies may be key to managing transportation costs in 2025.