‘We can’t expect any fuel prices to go down’: The rising cost of diesel

As the war in Iran drags on, the impact is being felt far beyond the Middle East.

Diesel prices are climbing sharply across Western Canada, leaving truckers and freight companies struggling to absorb the rising cost of moving goods.

Parm Pooni, an Alberta-based trucker who hauls packages for major retailers, says filling his tank now costs about $2,200 in Alberta, and even more in B.C. He warns that the financial strain is pushing some operators to the brink.

“There’s going to be a time when I just have to get out of this truck,” Pooni said. “Why am I losing money when I could drive a company truck, where I don’t have to pay for fuel or anything like that?”

Truck stops in Calgary reported diesel at roughly $2.20 per litre on Monday, part of a surge that analysts say is tied to global supply pressures. While North America isn’t facing a shortage, other regions are, driving up worldwide prices.

Freight companies are feeling the squeeze too. CSA Transportation, which once offered 30‑day all‑inclusive pricing, has now cut its price guarantee to just seven days.

“It’s a very challenging time for us,” said Herman Fallick, the company’s president and CEO. “We did put a small increase through to our customers, modest, but we are just trying to hold to give people consistency because we are hoping things get back to a little bit more normal.”

Matt McClain, a petroleum analyst with GasBuddy, says relief isn’t coming soon.

“We can’t expect any fuel prices to go down anytime soon, unfortunately,” McClain said. “That includes diesel, jet fuel and other unleaded gasoline. The problem is obviously the Strait of Hormuz remains closed, and that’s creating an issue on a global scale.”

McClain added that markets are reacting to escalating rhetoric, including threats from the U.S. president to target Iranian infrastructure unless a deal is reached. Prices are likely to rise several cents per litre this week at minimum, he says.

For truckers like Pooni, the uncertainty is alarming. He says without support, such as larger fuel subsidies from the companies he contracts with, many independent operators may be forced off the road.

“These trucks here, we keep this thing going,” he said. “We shut down, there’s no eggs or milk.”

The CityNews gas prices page tells you the average cost at the pumps in Calgary and the lowest price near you.