Diesel prices drop 13 cents a litre in Nova Scotia as fuel costs fall across Canada

ENFIELD · The cost of diesel went down by 13 cents a litre in many parts of Nova Scotia on Wednesday morning, bringing the price to 256.5 cents a litre. Regular self-serve gasoline also became cheaper in several provinces, including an 11 cent drop in Toronto to $1.67 a litre. Analysts say the lower fuel prices are a reaction to global market optimism about the wars involving Iran and Ukraine. Carol Montreuil, a vice-president with the Canadian Fuels Association, said the drop reflects a significant recent decline in the price of crude oil. "It is fantastic and hopefully it’s a sign of more things to come," said Colin MacDonald as he filled up his pickup truck with diesel at a truck stop in Enfield, N.S. "A lot of people are struggling and just doing what they can to get by so I’m sure this is going to make a lot of people happy." Trucker Roger Spicer estimated the diesel savings would be about $60 as he filled his massive work truck. "I am the same as everybody else, going to the grocery store, even filling up your car with gas, it all costs a lot," said Spicer, who added the decreased price was welcome news at a time when everything is getting more expensive.

Montreuil said the North American economy is largely fuelled by diesel, and growing energy and transportation costs have been passed on to Canadians. "People have seen the prices of everything go up and that includes the prices of that food and transportation," said Montreuil. "The impact is being felt in all sectors including agriculture." He noted that while there is still no resolution to the conflicts, hopes for one are affecting the market. "There is still no resolution, but there are hopes for it," said Montreuil. "This is really reflecting on the price of crude, which has come down significantly in the past couple of days and that is great news for consumers."

Dalhousie University professor and food researcher Sylvain Charlebois said Canada's food inflation rate in September was 2.2 per cent. He cautioned that shoppers hoping lower diesel prices will immediately lead to more affordable groceries will be disappointed, at least in the short term. "Everything that is hauled in is based on contracts that were signed a few months ago," said Charlebois. "Seeing fuel prices drop is a really good sign but those prices need to remain low for a while." Yadude Books reported in October that rising diesel prices threatened to push food inflation higher. Montreuil said the focus will now be on U.S. President Donald Trump. With the U.S. midterm elections over, he wonders whether sweeping losses for Republicans would affect Trump’s policies regarding the wars with Iran and Ukraine, which would have an impact on global fuel supplies.

With files from BNN Bloomberg