Average gas prices rise in Winnipeg amid ongoing Iran war

Analysts are predicting gas prices will continue to increase due to the ongoing conflict in the Middle East. Danton Unger explains.

Experts say Winnipeggers should expect to see higher gas prices as oil producers navigate the ongoing war between Iran and an alliance between the United States and Israel.

The jump in gas prices wasn’t a surprise to Ron Hope, who was filling up his car Friday afternoon.

“We were sort of expecting them as soon as the war starts,” he said. “I don’t like it, but there’s nothing we can do about it.”

Several stations across the city had gas priced at 149.9 per litre as of Friday afternoon, while some still held on to lower prices sitting around 132.

By Friday evening, the citywide average climbed to 147.0 according to GasBuddy. That’s a jump of more than 20 cents over last month’s average and the highest the city has seen in more than three months.

“I wish I could say things are going to stabilize, but we still have room to go,” said Matt McClain, a petroleum analyst with GasBuddy.

McClain said the jolt in prices at the pump all comes down to a narrow shipping channel on the southern border of Iran called the Strait of Hormuz. About 20 per cent of the world’s seaborne crude oil supply passes through the strait.

But with the ongoing war, Iran has effectively closed the passage as it has threatened to attack any ships that pass through.

“Oil prices right now are going to continue to increase in this manner until we can figure out a solution for the Strait of Hormuz and get oil moving along through that channel,” McClain said, noting even if oil starts to move through the strait again, it will take a while for gas prices to steady.

McClain said as long as the strait remains closed, oil prices will continue to go up, which means gas prices will also continue to rise across the country. He said in the past week, the average price of gas across Canada went up 16 cents per litre.

“It’s not impossible to see $1.60 per litre national average at this point,” he said.

Driver Fern Wasney was filling up her car Friday, as she worried how much higher the prices could climb.

“I’m filling up now because I heard it’s going to jump,” she said. “I don’t know. I guess I won’t be driving too far.”

McClain said drivers should drive the speed limit and ensure their vehicles are in good working order to help improve fuel efficiency.