Canada Gas Prices Jump 5-10 Cents as Middle East Crisis Pushes Brent Above $87

Gasoline prices jumped across Canada on Wednesday, July 15, with increases of 5 to 10 cents per litre as Middle East tensions and supply concerns pushed Brent crude above $87 per barrel. Vancouver hit 198.9 cents per litre while Toronto reached 172.9 cents. Analysts warn prices will worsen through early August as the energy crisis deepens.

Why prices spiked Wednesday

Gasoline prices rose 5 to 10 cents per litre across Canada on July 15 as Brent crude climbed past $87 per barrel, up sharply from $66.84 a year ago. Dan McTeague, president of Canadians for Affordable Energy, cited a global supply shortage affecting not just oil but also refined gasoline and diesel. Hostilities between Iran and the United States have created uncertainty in the Strait of Hormuz, a critical shipping route for global energy supplies.

Regional price variation across Canada

Vancouver recorded the highest average price at 198.9 cents per litre on July 15, while Edmonton had one of the lowest at 165.9 cents. Toronto hit 172.9 cents. The spread reflects regional refinery capacity and transportation costs. The Bank of Canada’s Business Outlook Survey found that nearly three-quarters of firms reported cost increases tied directly to higher fuel costs, including shipping and transportation.

Worse ahead through early August

McTeague warned that prices will deteriorate further in the final week of July and first week of August as the energy crisis intensifies. Consumers already report frustration at the pump. The Bank of Canada held its overnight rate at 2.25% on July 15 but flagged elevated gasoline refinery margins as a driver of higher headline inflation in 2026, though margins are expected to gradually normalize if oil prices fall.

Impact on consumer spending and business costs

Higher gasoline prices are already constraining consumer discretionary spending on travel, dining, and major purchases like vehicles and furniture, according to the Bank of Canada. Businesses tied to consumer spending report weakening sales outlooks. Some firms also face cost pressures for oil-derived products such as resins and foams, adding to supply chain inflation beyond fuel alone.

Final Thoughts

Canadian drivers face sustained pain at the pump through early August as Middle East tensions and supply constraints keep Brent crude elevated. With prices up 5 to 10 cents per litre and forecasts for further increases, households and businesses will feel mounting pressure on budgets and margins.

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