As gas prices in Ottawa surge because of the ongoing conflict in the Middle East, few are feeling the financial hit harder than taxi drivers. “We cannot increase our price based on that. Other stores, maybe they can jack up their prices, but we are controlled by the city and we cannot jack up our price. Even if the gas price goes to two dollars, we still charge the same amount. So, this is unbearable,” said Demmalash Cherant, who has been a cab driver for 35 years. “Usually, [gas] will take about 14 to 15 per cent of our fare in a van like this. But now, it goes to 20, 22 to 25 per cent of our income goes directly to gas price.” According to GasBuddy.com, the average cost of gas in Ottawa has surged by more than 20 cents in the past week. Analysts say the spike is driven by rising oil prices primarily due to the ongoing war in the Middle East and tensions surrounding the Strait of Hormuz, a key shipping route where roughly one-fifth of the world’s oil supply passes through. The surging price of oil is not only impacting drivers. Travel experts say flights are could likely see price jumps in the weeks ahead if the war in Iran drags on. “The way it’s looking right now, that could be the immediate effect we have, regardless of if there is a solution or resolution even in the next few days,” said Martin Firestone, president of Travel Secure Inc. “People should be wary that, if they are planning travel and going for summer, trips like that, tickets should be bought now before any price increase takes place.” For Firestone, price increases are not the only concern. He says cancellations are another possibility. “If this were to continue, and the cost of fuel goes up and there’s a shortage, that could, in fact, change some airlines decisions on regular daily flights,” he said. “That will affect the people who have non-refundable trips that they’re going.” Firestone says cancellation insurance is a must for travellers who don’t want to run the risk of wasting money on interrupted travel plans. “Simply put, if you are purchasing a trip that is not only airfare but also other costs that you’re going to be incurring, you should be backing it up with cancellation and interruption insurance because at some point, this could become a ‘known cause’,” said Firestone. “If it does become a ‘known cause,’ the insurance companies can take that reason off the table as to why you could make a claim.” As for public transportation in Ottawa, the city says it does not expect the price fluctuations to have too big an impact on OC Transpo. “To manage fuel price volatility and protect taxpayers, the City of Ottawa has a long‑standing practice of hedging diesel fuel, which helps reduce market risk and provide budget stability,” said Cyril Rogers, general manager and chief financial officer, finance and corporate services in a statement to CTV News Ottawa. “The City’s total fuel budget for 2026, including the Ottawa Police Service, Ottawa Public Library and Ottawa Public Health, is $46.4 million, with OC Transpo accounting for $37.6 million. While fuel markets can experience short‑term volatility, the City’s hedging program helps insulate the 2026 budget from these fluctuations, as staff continue to monitor market conditions closely.”
