As gasoline prices keep ticking higher toward $2 a litre and diesel sits near $2.50, there is little relief for Canadian drivers as the global energy crisis grows with no end in sight to the Iran war.
The conflict continues to choke transit through the Strait of Hormuz, cutting off roughly 20 per cent of the world’s oil and natural gas supply from international buyers.
Countries around the world are feeling the strain. Governments have ordered staff to work from home, reduced the work week and closed universities to conserve fuel.
The Philippines is under a national energy state of emergency as local fuel prices have doubled and oil stockpiles have dwindled.
In Canada, the pain at the pumps and the expected rise in inflation is a financial challenge for many as the cost of living continues to climb.
But overall, the country is not nearly as exposed to the impacts of the energy crisis as many other countries.
Canada has some level of protection from the worst impacts of the crisis, considering its abundance of energy production. That’s why it’s faring better than many other countries, especially those grappling with even higher prices and shortages.
“We’re insulated, no question, from what’s happening around the world in that we’re unlikely to run out of oil,” said Warren Mabee, director of the Institute for Energy and Environmental Policy at Queen’s University in Kingston, Ont.
No fuel shortages, but gasoline and diesel prices are rising. So far, natural gas prices haven’t budged in Canada, explains Warren Mabee, a professor at Queen’s University.
Worsening crisis
Dozens of countries have introduced policies this month to ration electricity, conserve fuel and hoard fertilizer. For instance, vehicles can only be driven on alternate days in Myanmar, and there are limits of 15 litres of fuel per week for drivers in Sri Lanka. In two Australian states, public transit is now free, a measure aimed at encouraging people not to drive.
Asian countries have been hardest hit by the energy crisis, and their citizens are being asked to make a range of sacrifices amid shortages.
In Thailand, the government has urged people to take their jackets off to cut down on the amount of energy used by air conditioning units while sports fans in Pakistan have to watch cricket games at home to conserve fuel.
Some countries, including China and South Korea, are suspending some overseas sales of fertilizer and cutting fuel exports.
Rising prices, but no shortages
In Canada, the impact is largely at the pumps.
Since the Iran war began, oil prices have risen about 50 per cent, and that’s driving up the cost of fuel.
The average price for regular gasoline is $1.89…
Read More: The energy crisis is getting worse. How protected is Canada?
