Fuel Prices Surge in Victoria Amid Iran Conflict, Experts Warn of Wider Impact

Gas prices in Greater Victoria have surged to approximately $1.95 per litre as of March 13, 2026, largely due to escalating tensions related to the ongoing conflict in Iran. Experts warn that this spike is likely to contribute to rising costs across various sectors, affecting consumers nationwide.

Petroleum analyst Matt McClain from GasBuddy highlights the precarious situation, stating, “The bottom line is, the prices are going up and we’re expecting prices to continue to go up.” This increase is attributed to disruptions in the Strait of Hormuz, a critical passageway for oil transport. Approximately 20 million barrels of oil, representing 20% of the world’s supply, pass through this chokepoint daily.

Recent threats from Iran to target ships in the Strait have exacerbated concerns over oil supply security. Diplomatic efforts by France and Italy to secure safe passage have not yet yielded a solid plan, leaving the situation uncertain. McClain emphasizes that extended blockages of the Strait of Hormuz could have serious repercussions for global supply chains, with rising oil prices being just the beginning of a broader economic ripple effect.

As of now, the national average for gas in Canada stands at $1.60 per litre, reflecting an increase of five cents in just the past 24 hours, 10 cents over the last week, and a significant 29 cents over the past month. Meanwhile, diesel prices have also climbed to an average of $2 per litre, marking a notable rise for the first time since 2023.

“This situation is particularly challenging for shipping,” McClain notes. He adds that the increased fuel costs will influence everything from freight trains to semi-trucks, potentially leading to higher prices for everyday goods. The initial price hikes are expected to be most evident in fresh produce and meats, as these items require more frequent transportation.

Food distribution expert Sylvain Charlebois from Dalhousie University concurs, stating, “Energy will affect everything really. From cars to clothes to liquor, everything.” The interconnectedness of fuel costs and consumer prices suggests that households may soon feel the effects of rising costs.

Long-term implications extend beyond the Canadian border. In Asia, countries heavily reliant on Middle Eastern oil are already experiencing shortages. For instance, nations such as Bangladesh, the Philippines, and Pakistan have had to implement four-day work weeks to conserve fuel. McClain notes that Thailand currently has about 95 days of energy reserves left, while Vietnam has urged businesses to allow employees to work from home to reduce fuel consumption.

Concerns are growing about the availability of imports in Canada, as many products on store shelves are manufactured in Asia. McClain warns, “I am concerned that we don’t have an exit strategy on how to get the Strait of Hormuz reopened. The longer it’s closed, the more complex the problems will be, and the longer it will take to unravel.”

In response to the crisis, the International Energy Agency (IEA) announced a historic release of 400 million barrels of oil to stabilize energy markets. This release is more than double the amount provided after the Russian invasion of Ukraine in 2022. Canada has also committed to contributing 23.6 million barrels to this effort.

As the situation unfolds, consumers and businesses alike are bracing for the potential impacts of rising fuel prices on everyday life. The ongoing conflict in Iran and the status of the Strait of Hormuz remain critical factors that will dictate the course of energy prices and economic stability in the near future.