Canadian gas prices hit record high with no end in sight, experts say

As Canadians experience high gas prices, things may only get worse with geopolitical tensions rising.

The cost of fuel has skyrocketed nationwide, with many provinces in Canada reaching record high levels. And, with immense uncertainty surrounding geopolitical tensions there’s no end in sight, experts warn.

“It does look like the pain will get worse,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

As the price of crude oil has reached its highest level in seven years, and with conflict between Ukraine and Russia at a spearhead, the average price at the pump has reached a national average of nearly $1.55 per litre, according to the Canadian Automobile Association.

Despite Canadians in the country’s interior noticing lower prices than their coastal counterparts, the price of crude oil is currently trading for just over US$93 a barrel, Dr. Werner Antweiler, economics professor at the University of British Columbia’s Sauder’s School of Business, told Global News.

This is the highest it’s been since 2014, he noted.

With high demand and low supply, the concern of Russia, a major supplier of oil, curtailing shipments in response to imposed sanctions because of its ongoing clash with Ukraine, doesn’t make things any better.

“We’ve already seen Russia slow down nation gas supply to Europe as Germany has taken its time to approve the Nord Stream 2 pipeline, so the thinking is the Russia could also potentially weaponize oil,” De Haan said.

“If Russia were to abstain from invading Ukraine that certainly would help some of the pressure.”