Analyst warns rising diesel prices could inflate cost of food by 30 percent

According to an analyst within the petroleum industry, a spike in diesel prices brought on by tensions around the world could potentially cause food prices in Canada to increase drastically.

Russia’s invasion of its neighboring country Ukraine has led tensions to continue escalating, and ramifications of Putin’s actions are being felt all over the globe. 

Gas prices have already been on the rise due to inflation, and diesel has followed suit as well. The increase in cost of diesel, which is crucial for the ground transportation of a variety of goods and supplies, has caused many to feel concerned over potential costs for customers.

Overnight earlier in the week, the price of gas rose seven cents, with another increase of the same amount expected to follow through the week. 

On Wednesday, Dan McTeague, the president of Canadians for Affordable Energy spoke with CP24, explaining the consequences that could ensue upon everyday Canadians as a result of increasing diesel prices.

“The reality is that with diesel moving much higher than gasoline, we’re not only looking at higher fuel prices, but pretty much the cost of everything,” he said.

McTeague continued, “I am not an agro-economist, but I can tell you in my discussions with many, which is part of my work here, we’re looking at a 30 to 35 percent increase in food prices as a result of these increases in diesel and we haven’t even started the planting season yet. ”

According to reports by the Toronto Sun, oil has risen from $92USD per barrel to $109 since Russia’s attack, and there appears to be no slowdown in sight.

McTeague added that he predicts the price of gas in the greater Toronto area will hit upwards of $2 per liter in the upcoming weeks, and he also suggested that the increasing cost of fuel may lead to inflation the likes of which Canadians have “probably not seen in our lifetime.”