Calgary gas prices climb as analysts forecast no relief

The price of fuel has jumped again in Calgary and the Middle East conflict is mainly to blame. Mason DePatie reports.

Calgary drivers are now paying more at the pump, with gas prices climbing to around $1.75 a litre at many stations on Thursday.

This increase follows rising global oil prices due to escalating Middle East tensions and concerns over fuel supply.

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Analysts say the latest jump is being driven by fears that fighting between Iran, the United States and Iran-backed Houthi forces could disrupt major oil shipping routes and exports.

At the same time, supplies of gasoline and diesel are tightening, adding further pressure to prices at the pump.

WTI crude has climbed back to US$80 a barrel this week, up significantly from roughly US$63 at the same time last year.

“The world is continuously creeping towards a shortage in supply. Not just in oil, but we’re also seeing it in gasoline and diesel,” said Dan McTeague, president of Canadians for Affordable Energy.

Although Calgary prices remain lower than cities like Vancouver, where rates approach $2 per litre, analysts caution that further increases are possible.

McTeague says prices could continue to rise through the end of July and into early August if tensions in the Middle East persist or worsen, or if there are further disruptions to global oil shipments.

The higher fuel costs also come during the peak summer travel season, leaving many drivers facing more expensive road trips and daily commutes.