Diesel prices in New Brunswick topped $3 per liter after an overnight hike.
The maximum price for diesel in the area went up $0.686. Fuel prices typically reset at midnight every Wednesday, but prices can be changed at any time if the benchmark rate moves either higher or lower by $0.60 in one day.
This increase marks the highest price for diesel since at least 2006 when the Energy and Utilities Board began regulating fuel prices. Diesel prices in Canada have been elevated since inventories in the United States have been on a downtrend, while demand surged as the world emerged from the coronavirus pandemic.
A diesel shortage, as SmallCapSteve explains, would result in higher diesel prices, which would mean higher costs across vital industries that underpin the economy such as trucking, farming, to construction.
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Farmers told CBC News that the impact of the price rise will be immediate.
“We just started our grain corn harvest this year for the season and it’s approximately going to be an extra $1,000 a day on harvesting our corn crop,” David Coburn of Coburn Farms said. While Mark Smith of Springhill Farms said it will only get worse if the situation continues next year in the spring and summer when farms use tractors more.
Information for this briefing was found via GasBuddy, CBC News, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
