Southern Alberta gas prices spike due to U.S.-Iran conflict

Conflict in the Middle East is driving up prices at the pumps here. This latest increase might be tough, but it's only expected to get worse.

Conflict in the Middle East is driving up prices at the pumps across Alberta, and while the latest increase may be tough, prices are expected to grow in the coming days.

In Lethbridge gas prices jumped about 10 cents since the weekend, with the average price in now sitting at $1.25 per litre.

“I sure wish I had better news for motorists when it comes to the price point of gas at the local convenience store or gas station,” said GasBuddy petroleum analyst Matt McClain. “It is a direct result of what’s taking place between Israel, Iran, and the United States.”

It’s difficult to predict exactly how prices will react to the ongoing conflict, but analysts say drivers should prepare for more price hikes.

It’s also impossible to say just how high prices might reach, McClain said.

“It’s easy to role play, but very difficult to get it right when it comes to scenarios,” he said. “There are so many potential scenarios in a war footing and a war setting that could happen, which could move prices back and forth, when it comes to crude oil and wholesale gasoline prices.”

It’s been a hectic couple days for local gas stations, who are all keeping an eye on wholesale and competitor prices to determine how much to charge at the pumps.

“It’s super busy. We just keep checking and checking prices and keep seeing what’s going up and down,” said Gas King account manager Zac Morris.

Gas stations know customers will likely be frustrated with the higher prices, but until the situation in the Middle East settles down, there is little that can be done locally.

“We’re just constantly monitoring all the gas prices in town. Constantly getting prices,” Morris said.

Lethbridge’s average gas price is still lower than the Alberta average of $1.31 per litre.