Pain at the pumps continues, if not worsened, Monday morning.
Some stations in Metro Vancouver are now advertising a litre of gas for $2.16.
Gas prices have been increasing around the globe since the onset of the U.S. and Israel’s attacks on Iran and disruptions to traffic in the Strait of Hormuz, curtailing the flow of millions of barrels of crude each day.
Some members of B.C.’s trucking industry say while the spike at the pumps hasn’t affected day-to-day operations, the trickle-down effect for consumers is already happening.
“And ultimately, that’s what happens,” said Dave Earle, President of the BC Trucking Association.
“There’s no mysterious bucket of money that somebody uses to absorb it. The shipper can absorb a little bit, the trucking company maybe a little bit, but the vast majority — if not all of it — comes right to you and I,” Earle said.
He says customers of all kinds might start to see some price hikes on store shelves as diesel costs skyrocket.
According to GasBuddy.com, upward pressure on fuel prices is likely to persist as long as the Strait of Hormuz stays closed.
“The most cost-sensitive items are the ones that you and I use all the time, which is food, perishable food,” said Earle.
“Those are very low value per weight cost. We think about a load of lettuce. An increase of $1,000 to move a load of lettuce is a very big deal because that load is only worth $20,000 or $25,000.”
Earle says it’s totally in the hands of the retailer as to whether increases in fuel costs drive up consumer costs on store shelves.
GasBuddy says rising fuel costs are a concerning trend, posing growing risks to the broader economy, which may reaccelerate inflation.
And in case Metro Vancouver residents weren’t already feeling the pinch from the soaring costs, some places in Canada still haven’t reached the $2 mark.
—With files from David Nadalini