Gas prices in Canada rise at fastest pace since April before Thanksgiving weekend

Gas prices across Canada surged at the fastest rate since April, just ahead of the Thanksgiving holiday weekend. According to data from Kalibrate, the average price of regular fuel rose by 4.9 cents per litre between October 3 and October 10.

The steepest increase was seen in Fort St. John, B.C., where prices jumped 12.9 cents per litre on average. Other significant hikes were recorded in Winnipeg, North Bay, Ont., and Abbotsford, B.C. In contrast, drivers in Maritime provinces, from New Brunswick to Prince Edward Island, experienced slight price reductions over the same period.

These fluctuations coincide with a turbulent week for oil markets (CL=F). Global oil benchmarks dipped on Friday as Libya resumed production, and markets weighed the impact of Hurricane Milton’s damage. Analysts are also monitoring the potential consequences of escalating geopolitical tensions in the Middle East.

Helima Croft, RBC's head of global commodity strategy and MENA research, addressed the ongoing conflict in a Thursday research note.

“As Israeli officials continue to vow a ‘lethal’ and ‘surprising’ response to last week’s Iranian missile attack, we expect the White House may be encouraging Israel to focus on refineries rather than oil export facilities, reasoning that the economic impact would hit Iran more directly,” she wrote. “However, U.S. influence might not be as strong as it was in April, when Israel’s response was more restrained.”

In North America, En-Pro International's chief petroleum analyst, Roger McKnight, forecasts that any price increases caused by hurricanes will remain concentrated in the U.S. Gulf region.

“There will be supply constraints until these storms pass, but the resulting price spikes will be localized to markets in Florida and the southeastern U.S.,” McKnight explained on Thursday.

“There won’t be any significant rise in pump prices beyond those areas.”