The price of gas could increase up to 9 cents over the next two days due to the ongoing conflict in the Middle East. Canadians for Affordable Energy president Dan McTeague says gas prices could increase six cents a litre on Wednesday to $1.449 a litre, with prices jumping an additional three cents a litre on Thursday. McTeague says diesel prices will rise 13 cents a litre on Wednesday and 8 to 10 cents a litre on Thursday. He initially said gas prices could jump 6 cents a litre on Thursday, but said the increase would be smaller after U.S. President Donald Trump’s offered military support and insurance for oil and gas shipments. Experts are concerned about the movement of oil through the Strait of Hormuz and the impact that could have on the global oil supply. Iran exports approximately 1.6 million barrels of oil a day. “About 20 per cent of the world’s oil is now, potentially, offline or at least at risk,” McTeague told CTV News Ottawa on Monday. Global oil and gas prices continued to rise on Tuesday as the U.S.-Israel war on Iran halted energy exports from the Middle East. McTeague says the rise in the cost of diesel will drive up the costs on goods, calling it the “global workhorse.” “It’s what the economy runs on. It’s not just transportation for trucks; it’s jet fuel, it’s also used as a proxy for heating oil,” McTeague said. “It really is at the base of most economies. With that price going up, the impact will certainly be inflationary.” With files from Reuters, CTV News journalist Joe Van Wonderen and CTV News Ottawa’s Dave Charbonneau
