Gas prices in Canada have hit a record high. Canadians in most parts of the country have noted that prices are either above $2 per liter or approaching that level, CBC News reported.
According to Gas Wizard, a website that tracks the cost of blue fuel, it has risen across Canada, with prices jumping 4 to 6 cents in many urban centers across the country. In Vancouver, the price of gasoline reached $2.17.
Gas prices have risen rapidly over the past year, and the Russian special operation in Donbass, particularly the global economic changes that followed, have exacerbated the trend. In May of last year, for example, the average gas price in Canada was $1.32.
According to Vijay Muralidharan, consulting director at Kalibrate, an energy firm in Calgary, the crude oil market was very tight even before the situation around Ukraine. Another factor affecting gas prices is the global shortage of diesel fuel.
Due to the fact that both gasoline and diesel are produced from crude oil, the factors forming the final price are directly dependent on each other. Otherwise, producers would focus on diesel production.
On Friday, May 6, the German Federal Association of Energy and Water Companies (BDEW) warned Germans of a strong increase in gas and electricity prices in the coming months. Since the beginning of 2022 there has been a dynamic of strong increases in average tariffs for households and industrial consumers. Hence the increase in wholesale prices.
Also on this day, Fatih Birol, director of the International Energy Agency (IEA), said that the world is facing a global energy crisis for the first time, and sanctions against Russia, as well as retaliatory measures to them, will have even greater consequences for the energy market.
Birol recalled the great oil crisis of the 1970s, which brought tangible consequences to the economy in the form of global inflation.