Well, well, well.
That didn't take long.
The price of a regular litre of gas at Kelowna stations catapulted from $1.37 to $1.57 today, just four days after the Iran war started and drove up the price of oil.
That's a sudden 20 cent per litre hike.
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The surge is even bigger—50 cents—if you count from last month when a litre of regular gas in Kelowna could be had for $1.07.
For a typical car gas tank holding 60 litres, the price spikes amount to $12 and $30 for a fill, respectively.
That's an extra cost for every family at a time when groceries, utilities and housing are also at all-time highs.
The Iran war is being blamed for higher prices at the pump because the Iran-controlled Strait of Hormuz is used to transport 20% of the world's oil, 24% of natural gas and 30% of chemical fertilizer.
Although the oil at Kelowna gas stations may not originate directly from the Strait of Hormuz, the American and Israeli attack on Iran has destabilized oil flow and consequently driven up prices.
"No one has confidence to transit the Strait of Hormuz right now," said Patrick De Haan, the petroleum analyst and media relations officer at GasBuddy.com, the fuel price tracker platform.
"There's no need to panic. The markets have had a measured response. But, it has driven up oil prices by about 5%."
A 5% escalation at the pump would be 7 cents, a push from $1.37 to $1.44 per litre.
However, the increase is actually 20 cents a litre, a 15% hike, an indication that the price at the pump isn't tied exactly to the price of oil.
A quick look on GasBuddy.com shows the aforementioned $1.57 a litre in Kelowna, $1.59 in Kamloops, $1.76 in Victoria, $1.50 in Penticton and $1.56 in Vernon.
To put this in perspective, the price of gas in Kelowna peaked at $2.10 a litre in May 2022 in a post-pandemic run up following the Russian invasion of Ukraine that pushed up oil prices.
Also mixed into this most recent price increase is the perennial seasonal bump for so-called summer gasoline, which is more expensive to refine.
Of course, Canada might be immune to these international fluctuations if it were self-sufficient in oil and gas production and refining instead of importing some oil and refined products.
Yesterday, NowMedia Group ran a story featuring Dr. Sylvain Charlebois, also known as 'the food professor,' who predicted more inflation, higher gas prices and more expensive groceries in the wake of the Iran war.
Energy, most of it from oil and gas, is factored into the price of almost everything, including groceries, because energy powers farm equipment, the transport for distribution and keeps the lights and refrigeration going at stores.
Thumnail photos by Egin Akyurt on Unsplash
