Gas prices in Canada have reached an all-time high. Canadians in most parts of the country noted that prices are either above $2 per liter or close to it, CBC News reported on Friday, May 6.
According to Gas Wizard, a website that tracks the cost of gas rising across Canada, prices jumped 4-6 cents in many urban centers across the country. In Vancouver, the price of gasoline reached $2.17.
Gas prices have risen rapidly over the past year, and the Russian special operation in the Donbass, in particular the global economic changes that followed, have exacerbated this trend. Thus, in May last year, the average gas price in Canada was $1.32.
According to Vijay Muralidharan, consulting director of Calgary-based energy firm Kalibrate, the crude oil market was quite tight even before the situation around Ukraine. Another factor affecting gas prices is the global shortage of diesel fuel.
Due to the fact that both gasoline and diesel fuel are produced from crude oil, the factors that form the final cost are directly dependent on each other. Otherwise, manufacturers would have focused on the production of diesel fuel.
On Friday, May 6, the Federal Association of Energy and Water Supply Companies of Germany (BDEW) warned the Germans about a strong increase in gas and electricity prices in the coming months. Since the beginning of 2022, there has been a dynamic of strong growth in average tariffs for households and industrial consumers. Hence the increase in wholesale prices.
Also on the same day, Fatih Birol, director of the International Energy Agency (IEA), said that the world is facing a global energy crisis for the first time, and sanctions against Russia, as well as retaliatory measures against them, will have even greater consequences for the energy market.
Birol recalled the great oil crisis of the 1970s, which brought tangible consequences for the economy in the form of global inflation.
Sanction pressure on Russia intensified after the start of the military operation to protect Donbass, which was announced on February 24. A few days earlier, the situation in the region escalated significantly due to shelling by the Ukrainian military. The authorities of the Donetsk and Luhansk republics announced the evacuation of residents to the Russian Federation, and also turned to Moscow for help. On February 21, Russian President Vladimir Putin signed a decree recognizing the independence of the DPR and LPR.
For more up-to-date videos and details about the situation in Donbass, watch the Izvestia TV channel.