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Diesel prices near record levels are raising costs across Canada's supply chain while Calgary and Olds RCMP investigate unusual fuel thefts from stations and a cardlock.
Diesel prices remain near record levels across Canada, putting pressure on businesses and consumers throughout the supply chain. Patrick De Haan, head of petroleum analysis at GasBuddy, said prices have slipped below $2.60 per litre but are still in record territory.
Canadian diesel was about $1.86 per litre in June before climbing to roughly $2.65 in recent weeks. De Haan called that a substantial increase. The rise is driven by global factors affecting refined fuel supplies. These include geopolitical tensions between the United States and Iran and restrictions through the Strait of Hormuz.
Global Tensions Drive Diesel Prices
Reduced refinery output from China and Ukrainian attacks on Russian oil refineries are also contributors. De Haan said what happens next depends largely on overseas developments. If the situation escalates between the U.S. and Iran or Ukraine and Russia, and more impediments hit diesel supplies, De Haan warned prices could go right back up. Diesel powers much of the global economy, including supply chains and logistics.
Everything up and down the supply chain consumes diesel, he said. Farmers across Canada use diesel to harvest crops. Trucks and trains rely on it to move food and other goods across the country. De Haan noted that gasoline does not get to a station or gas bar without diesel in a truck.
That means Canadians who never buy diesel can still feel the effects. The epicentre of the diesel impact will be at the grocery store, with every aisle affected, De Haan said. Higher transportation costs can also affect restaurants, online shopping and retail goods. For businesses that rely on goods moving in and out, the increase is felt well beyond the gas pump.
Small Business Feels Supply Chain Impact
Evelyne Nyairo, founder of Calgary-based skincare company Ellie Bianca, said higher transportation costs touch virtually every stage of her business. The impact includes ingredients coming in, packaging and labels. It covers all the raw materials needed before products can be made. The impact is twofold because it also affects products going out to customers.
Nyairo said rising shipping costs are putting additional pressure on company margins. We are reducing the number of hours for our staff, she said. We are looking internally first to cut off any extras, because we cannot keep increasing prices for the customers. She said tariffs have cost her company a significant share of its U.S. online business while shipping costs have risen for several years.
It is extremely challenging, Nyairo said. It is extremely challenging to keep growing in Canada, to keep hiring in Canada, to actually manufacture in Canada. The pressure comes as police in Alberta investigate several recent diesel thefts. Calgary police say they have received reports of diesel being stolen directly from fuel stations.
Police Investigate Rare Diesel Theft Cases
Calgary police Sgt. Nick Wilsher said these kinds of thefts are very rare. The thieves are actually going into the storage tanks which lie under the forecourt, or in the gas station area. A separate investigation is underway north of Calgary.
Olds RCMP said a significant amount of diesel was stolen from the Westview Co-op Cardlock in Mountain View County. The theft happened on Sept. 23 between 3 and 3:30 a.m. Surveillance footage shows a large tanker truck pulling up to the cardlock before the fuel was taken, according to RCMP. Police described the vehicle as a triple-axle tanker truck. It had a two-tone, red-and-white semi chassis and a white tank.
RCMP said the incident comes amid recent high-volume diesel thefts. They recommend fuel stations install anti-siphoning devices in ground-based tanks to help prevent future thefts. Police have not established that high diesel prices are behind the thefts. Wilsher said investigators do not know what ultimately happens to the stolen fuel.
We can only imagine that they must have somebody who they are intending to sell it to, Wilsher said. Or they are looking for a way to be able to sell it on to other locations. Drivers of diesel-powered vehicles pay the increase directly, but De Haan said the effects extend much further because of diesel's role throughout the Canadian economy.
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CTVToronto:High diesel prices hit Canadian businesses as police investigate unusual fuel theftsThis story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
Diesel Prices Canada Alberta Fuel Thefts Supply Chain Costs Calgary Police Investigation Olds RCMP Cardlock Theft
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