Global Conflict Elevates Canadian Fuel, Consumer Costs

The unscheduled adjustment by the Island Regulatory and Appeals Commission (IRAC) responds to geopolitical tensions following a U.S.-Israeli attack that killed Iran’s supreme leader, drawing a dozen countries into the conflict. Canadian energy and climate journalist Markham Hislop states Canadian prices are tied to global prices, predicting further increases as the conflict persists.

GasBuddy petroleum analyst Matt McLain highlights the critical disruption of the Strait of Hormuz, a waterway through which 20 percent of the global oil supply passes, with Iran warning vessels and causing shipping delays. These higher gasoline and diesel prices pass to consumers, increasing costs for groceries and other consumer goods, according to Hislop.

Atlantic Canada, including Prince Edward Island, relies on imported oil, with the Irving Oil refinery in Saint John, N.B., sourcing crude from Saudi Arabia, making the region particularly vulnerable to supply disruptions. Hislop also predicts that sustained higher and more volatile oil prices accelerate the shift toward renewable energy and electric transportation, leading to peak oil demand sooner than 2030.