With the construction holiday approaching, over a third of Quebec residents are gearing up to hit the road, but soaring gas prices may put a dent in their plans. In Montreal, drivers were shocked to find gas prices skyrocketing to 191.1 cents per litre at an Esso station on Atwater Avenue, a spike of over 10 cents in just a week. This surge has pushed prices above the 190-cent threshold, a level not seen since May.
Experts are cautioning that prices could climb even higher, potentially jumping by another 20 cents per litre by early August.
This surge in gas prices coincides with escalating tensions between the U.S. and Iran, triggered by accusations of ceasefire violations, particularly concerning the passage of commercial ships through the critical Strait of Hormuz. The U.S. has reimposed sanctions on Iranian oil and is preventing ships from leaving Iran, adding to the geopolitical uncertainty.
The impact of these tensions on global oil markets has been significant, with Brent crude prices spiking to US$81 per barrel after lingering below the US$80 mark for weeks. The week closed with the index hitting US$83.27 on Friday, reversing the trend of falling gas prices witnessed during a brief ceasefire period between the two nations.
The recent surge in gas prices, following a decline in June post a spring spike, is expected to moderate the annual inflation rate, with experts predicting a drop below three per cent when Statistics Canada releases fresh data on Monday.
