Diesel prices skyrocket, Manitoba consumers will feel impact

Truckers across Canada are reporting paying more to fill up their tanks than ever before, and it’s driving up costs across the board for consumers.

Professional Material Relocation Specialist Don Taylor from Manitoba made a stop in Northern Ontario for diesel on Friday morning, paying nearly $1,500 to fill his tank.

“That’s the most I have ever put in,” explains Taylor. “Before that, the most I put in was at the beginning of COVID and it was just over the $1,000 mark. The fuel price is double what it used to be, it’s just getting right out of hand.”

These prices according to Taylor, will hit those who own their own trucks the worst, making it unaffordable for many to continue driving.

The factors leading to the skyrocketing fuel prices are worldwide. Oil refineries being destroyed as a result of the Russia-Ukraine war, and the uncertainty in the Strait of Hormuz are large contributors.

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“It’s a world market, so if it’s not coming from Russia it’s got to come from some place which is bidding up the prices internationally.” says Supply Chain Management Professor Barry Prentice.

Part of the fuel shortage is a result of the temporary shutdown of Enbridge’s Line 5, a 30-inch-diameter pipeline that travels through Canada and U.S. states including Wisconsin and Michigan. The company says the stoppage was because of an unoccupied truck rolling into the pipe releasing natural gases. It’s since become operational again.

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In response to that issue in particular, Transport Canada has allowed truckers to increase the number of driving and working hours in a cycle if they’re moving fuel products to places including gas bars. That new exemption is applied until the end of the month, and applies to all drivers heading through Manitoba, Alberta, Saskatchewan and Ontario.

It’s something Prentice believes could benefit a system facing shortages, but likely won’t drop the cost of gas. Looking ahead, he doesn’t see impactful relief anytime soon.

“When it comes to diesel, we have to remember the whole world runs on diesel,” explains Prentice. “Jet airplanes, the railways, and the ships are using diesel, and the trucks. There’s a lot of pressure on that supply of diesel out there.”

When it comes to the everyday impacts on Manitoba consumers, higher transportation costs directly result in higher prices across the board.

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“If a company used to charge say $1,000 to get a load of cheese from Montreal to Winnipeg and the fuel price goes up, they’re going to have to put up their shipping costs or else just going to go broke.” says Taylor.

Rising diesel prices are driving up prices beyond just the transportation aspect. For farmers across Manitoba, the majority of their fuel bill is diesel-oriented, with many pieces of equipment running through an entire tank in just a few days.

For G & G Farms President Curtis McRae, it’s just another hurdle on top of what’s been a challenging few months.

“Since we lost most of our crop due to the June storm, the only thing I can do to make this project float this year is to cut expenses. It’s tough to cut expenses when the fuel you’re going to need goes up. This year, fuel will definitely be worth more than what my job is worth.”

The city of Winnipeg also felt shortages in the fuel and average driver would use.

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On Friday, multiple gas stations ran out of regular fuel, and were forced to sell higher grade for the same price.