OTTAWA – Canadians are experiencing higher fuel and food costs as a result of the ongoing conflict in the Middle East, according to a CBC News broadcast. While international oil prices have recently fallen following news of a two-week ceasefire, the impact on consumers has been limited.

Fuel Costs Remain High

Despite the decrease in oil prices, gasoline prices have not dropped significantly. In Ottawa, gas prices are approximately 30 cents higher per litre than last month, reaching $1.856 at some stations. Experts suggest a “price hangover” is likely, with fuel costs remaining elevated compared to six months ago. Diesel prices, impacting the cost of transporting goods, are also contributing to increased expenses. Jet fuel remains in high demand with limited supply, and the situation regarding the Strait of Hormuz remains unclear, potentially hindering significant price relief.

BMO Capital Markets senior economist Art Wu stated that while some relief is expected, a return to pre-war fuel prices is unlikely in the short term. He emphasized the importance of resolving the conflict and ensuring the full reopening of the Strait of Hormuz.

In Quebec, gas prices are even higher, exceeding $2 per litre in some areas.

Food Prices Increasing

The conflict is also driving up food prices, particularly for imported produce, meat, and dairy. Fuel surcharges from shippers and suppliers are being passed on to consumers. Monther Zade, owner of Food Fair in Winnipeg, noted a recent price increase on onions, from 75 cents to $1 for a two-pound bag. The price of diesel has jumped 40 percent since the war began, rippling through the food supply chain.

Experts suggest that buying local, seasonal produce as the Canadian growing season begins could help mitigate rising grocery costs. Consumers are reporting increased caution in their spending and more careful meal planning.

Political Developments

In other news, CBC News reported a surprise floor crossing in the House of Commons, with long-time Ontario MP Marilyn Gladue joining the Liberal party. This move brings the Liberals within one seat of a majority government ahead of upcoming by-elections. Liberal Minister Evan Solomon stated that Gladue’s decision was “pragmatic” and welcomed her to the party. Conservative leader Pierre Poilievre criticized the move, accusing Prime Minister Mark Carney of attempting to secure a majority through “backroom deals.”