Ukraine conflict likely to cause gas and oil prices to rise even higher

Gas prices at the pumps are well above $1.50 per litre throughout the Maritimes Friday and crude oil has surged past $100 a barrel, as the world continues to watch the crisis unfold in Ukraine.

“What is on the mind of everyone is an escalation,” said Canadian Fuels Eastern Vice President Carol Montreuil, who added when analyzing the cost of gas and oil, the Maritime's supply chain is not the same as other regions in Canada.

“There is not a Canadian pipeline connecting Atlantic Canada to the rest of the country, so it is a bit more difficult to get Canadian crude.”

Montreuil said it does not matter if crude oil and gas comes from other parts of Canada, the United States or overseas. Price markers are often influenced by the same overall market factors.

“They are all connected and as these prices change, irrespective of where this crude is coming from, and it will impact equally Maritimers and the rest of the country,” she said.

If the situation in Ukraine destabilizes further, the basic principles of supply and demand could cause oil and gas prices to dramatically increase.

“People will find other ways to bring products into the region, but it might be a more expensive price,” said Montreuil.

As for how the conflict in Ukraine is effecting industry at this time, a representative from the Port of Saint John in New Brunswick told CTV News they have not yet experienced any changes in volume coming in and out of Saint John Harbour.

However, Roger McKnight direly forecasted on Twitter, "Canadians can expect higher gas prices from Ukraine war to kick in on Saturday."

All of this is happening when Canadians were already braced for an increase in the overall cost of fuel.

“On April 15, there will be the switchover from winter to summer gasoline. There is a difference, It costs an extra four or five cents per litre,” said Dan McTeague from Canadians for Affordable Energy.

Which means, with or without the situation disintegrating in Eastern Europe, gas and oil prices are likely to rise even more in the foreseeable future.