Drivers in Nova Scotia woke up to higher fuel prices on Friday, following an additional change earlier in the week.
The provincial regulator used its weekly adjustment to raise the minimum price of gasoline by 6.4 cents to 145.7.
Diesel prices also climbed, rising 9.5 cents overnight to 156.4.
This is the second time diesel prices have increased this week. The Nova Scotia Energy Board used the interrupter clause on Tuesday to raise the price by 6.3 cents.
With both increases, the cost of diesel has jumped by 15.8 cents since last Friday. A year ago, drivers were paying 1.72 for gasoline and 1.78 for diesel.
But why such a sudden jump in prices?
Patrick De Haan, from GasBuddy, told The Todd Veinotte show on Friday that there are several factors as to why fuel is more costly.
“A lot of what we’re experiencing right now really has to do with the tensions in the Middle East, which have caused the price of oil to soar,” De Haan said.
Late last week, Israel launched attacks on Iranian nuclear sites, killing and wounding hundreds, said Iran’s ambassador to the United Nations. The strikes killed generals and scientists, but the ambassador told the U.N. Security Council that “the overwhelming majority” of victims were civilians.
De Haan said that in mid-April, tensions over U.S. trade policy forced prices to rise slowly, but that has skyrocketed since the ongoing escalations between Iran and Israel.
“We did see oil prices going up before that gently, as I mentioned, the trade policy has been having kind of a volatile impact on prices,” he explained.
That month, U.S. President Donald Trump made a trade deal with China just ahead of the Middle East conflict, which responded in oil prices, lifting “optimistically” that more deals could lead to global growth.
“If there’s de-escalation in the Middle East, we could very quickly see gas prices going the other way,” De Haan said. “It’s just a tale of what will happen next to give us an idea of what may happen at the pump next.”
When asked to look into his crystal ball, De Haan said he does believe prices will continue to climb, but not dramatically.
“I do not think that we’re going to see anywhere near record-setting prices. I would be surprised if we see the Canadian national average over $1.50,” he said.
Things are tied so greatly to the Middle East, that De Haan said, if people see a significant escalation, they should expect to pay at the pump. Another large unknown factor is hurricane season, which can disrupt supply chains and wreak havoc on fuel infrastructure.
With files from The Associated Press.