Canada fuel prices surge as global oil and geopolitical tensions drive costs

Fuel prices in Canada have risen sharply, with the national average now above C$1.80 per litre – a C$0.20 increase from the previous day and C$0.80 higher than a week ago, according to crowdsourced data from Gasbuddy. Analyst Patrick De Haan says West Texas Intermediate (WTI) crude for September delivery is trading above US$92 a barrel, up roughly 6 % on the prior day, and warns that pump prices could climb another five to ten cents in the coming weeks. The price spike is linked to heightened geopolitical tensions, including Ukraine’s attacks on Russian refineries, escalating U.S.–Iran confrontations, and Houthi‑backed disruptions in the Red Sea.

At the same time, broader economic growth is becoming increasingly expensive. Higher oil and gas prices are feeding into rising electricity costs across Europe, notably in Italy, Spain and France, while bond yields have surged, with the French and Italian ten‑year yields exceeding 4 %. In the United States, long‑term rates remain elevated. The European Central Bank left rates unchanged, though some members, as noted by President Christine Lagarde, advocated for a hike. The combined pressure of soaring energy costs and tight financing conditions is weighing on businesses and consumers alike.