Diesel prices skyrocket, Manitoba consumers will feel impact

Truckers in Canada have experienced historically high diesel fuel costs, which is now pushing up prices for consumers. Don Taylor, a professional material relocation specialist in Manitoba, recently paid $1,500 to fill his tank, a record for him. This price is double what it used to be before the COVID-19 pandemic. Taylor blames the sharp increase on factors such as oil refineries destroyed due to the Russia-Ukraine conflict and uncertainties in the Strait of Hormuz.

Barry Prentice, a Supply Chain Management professor, explains that diesel is a globally traded commodity and an increase in demand anywhere translates to higher prices worldwide. The temporary shutdown of Enbridge's Line 5 pipeline, which crosses the U.S. and Canada, has also contributed to the fuel shortage. Transport Canada has temporarily increased driving hours for truckers moving fuel products, including those in Manitoba, to help alleviate the shortage.

Despite this, Prentice believes the relief might not significantly lower gas prices. The impacts of higher diesel prices are far-reaching, affecting not only transportation costs but also the day-to-day expenses of businesses and households. For farmers, who rely heavily on diesel for their equipment, the rising fuel prices exacerbate a tough period, especially considering the recent crop losses due to the June storm.

The city of Winnipeg also experienced fuel shortages, with gas stations running out of regular fuel and having to sell premium for the same price.