Diesel prices on rise in wake of refinery fire
High diesel prices impact the entire economy and could lead to rising commodity prices, says expert
The price of diesel fuel has jumped across the country creating pain at the pumps for people in transport and agriculture industries.
Supply is down after a fire and explosion at a Federated Co-Op refinery in Regina on Dec. 24 last year.
Jason Toews, co-founder of GasBuddy.com, has been watching the spike in the price of diesel ever since.
"We've seen diesel prices rise dramatically in the past five or six weeks. Some prices in the country are around 142.9 right now, especially in Western Canada — it's expensive,” he said.
The average price of diesel in Calgary during the first week of this year was 129.2 per litre. Now it’s 134.6 per litre, according to Natural Resources Canada.
There's no word on when the refinery will be back in full production.
"High diesel prices impact the entire economy — all the trains and semi-trucks that travel across the country run on diesel, farmers run on diesel and what this means is we're going to be paying higher prices for almost everything,” said Toews.