OTTAWA- Food experts and economists warn that a global surge in diesel prices could lead to higher grocery bills for Canadian consumers this winter. The primary driver is the conflict involving Iran and shipping disruptions in the Strait of Hormuz, which have disrupted global energy markets and fertilizer supplies.
In Canada’s food supply chain, diesel powers the trucks and ships that transport goods, making transportation costs a direct factor in retail prices. Statistics Canada reported a 75% year-over-year increase in diesel prices in August. As colder weather sets in and domestic harvests decline, Canada relies more heavily on food imported from the United States and overseas, further amplifying the impact of high shipping costs—especially on fresh vegetables. Additional factors, such as currency fluctuations and trade disputes, are expected to add further pressure on overall food inflation.
