The war in Iran, with fears of disruption to supplies via the Strait of Hormuz, is driving up the price of crude oil globally, including here in Quebec.
From February 27 (the day before the conflict in Iran) to March 9, the average price at the pump in Quebec rose from 145.6 to 161.1 cents per litre, according to data from the Régie de l’énergie (Quebec Energy Board). This represents an increase of nearly 11 per cent.
But while gas prices have skyrocketed in Montreal and Laval, other areas of Quebec appear to have been less affected.
According to Quebec’s Energy Board, the average price of a litre of gasoline in Montreal and Laval was roughly $1.75 on Wednesday. Meanwhile, several other regions were noticeably lower, closer to about $1.62 in areas such as the Eastern Townships and Chaudière-Appalaches.
What’s happening is that retailers in Quebec regions appear to be absorbing part of the increase themselves — shrinking their profit margins in the process and triggering a price war, to remain competitive.
By absorbing part of the increase in the price of oil, Quebec service stations have so far limited the impact on motorists’ wallets, but experts warn that this is unsustainable for smaller players and won’t last.
The higher prices we’re seeing in Montreal are closer to the normal prices we should expect to see right now with global markets reacting to the war in Iran.
