Queen's University professor says high diesel prices are impacting consumer goods

Warren Mabee says consumers won't see price hikes immediately but that could change if the conflict in the Middle East continues.

Many Canadians don't drive vehicles that run on diesel but that doesn't mean the rising cost of the fuel isn't affecting their wallets.

Much of the goods being shipped to stores in Canada are through trucks, trains, and ships which run on diesel fuel.

Director of the Institute of Energy and Environmental Policy at Queen's University Warren Mabee says industries rely on diesel throughout their supply chains.

The price of diesel has gone up signifigantly in the past year. In Kingston, gas stations are selling diesel fuel between $2.47 and $2.54/litre as of Wednesday. 

That cost is having an impact on the price of the goods that are being sold in grocery and retail stores as well as services such as restaurants, delivery, and repairs.

Mabee says consumers won't immediately see an increase in prices but that may soon change if the demand for diesel continues to exceed supply.

Diesel fuel, much like regular gasoline, comes from oil that is shipped from foreign countries.

Mabee says tensions in the middle east has played a major role in the price of diesel and other fuel.

Mabee says the price of diesel in Canada has been largely spared from any tariff talk from US President Donald Trump as he has yet to apply tariffs to energy products such as diesel. 

Story by Ken Hashizume