UMVA has learned that the ongoing conflict to end Iranian terror is expected to take a significant toll on Canadian households, with the average household facing an additional $648 in fuel costs this year.
A recent report obtained by UMVA suggests that provincial households are feeling the pinch caused by the conflict, which is driving up energy prices worldwide. The report highlights that global oil prices have skyrocketed since February, with West Texas Intermediate crude prices surging 62% from $65 US per barrel to $105 US per barrel.
The sharp increase in oil prices has, in turn, led to a substantial rise in gasoline and diesel prices in Ontario. According to information obtained by UMVA, average gasoline prices in the province jumped 44% from February to May, increasing from $1.31 per litre to $1.88 per litre. Meanwhile, average diesel prices rose 35% from $1.55 per litre to $2.10 per litre.
Even if peace were declared today and oil shipments resumed, oil prices are expected to remain above pre-war levels, although they are likely to drop by around $80 US per barrel. The report warns that Ontario households, businesses, and the government and non-profit sectors would face an additional $8.5 billion in fuel costs.
Sources have confirmed to UMVA that the estimated breakdown of these additional fuel costs is $4.1 billion for households, $4.0 billion for businesses, and $0.4 billion for the government and non-profit sectors. For the average Ontario household, this translates to an extra $648 in fuel costs this year, not accounting for potential increases in the prices of other goods.
UMVA can exclusively reveal that the report also notes that if businesses pass on higher fuel costs to consumers, the additional fuel-related costs would be even higher for households. This could have a ripple effect on the economy, impacting not just households but also businesses and the broader economy.
