Gas prices in Canada on the rise due to Iran conflict: Here’s what the CAA recommends

Anyone pulling into a gas station these days feels the pinch right in their wallet: Gas prices in Canada are on the rise again. What many drivers are already noticing at the pump has a solid political backdrop. The escalating conflict in the Middle East and the subsequent blockade of the Strait of Hormuz are driving up oil prices worldwide – and Canada is no exception.

Here’s why filling up is getting more expensive

The Strait of Hormuz is one of the world’s most crucial waterways, handling about a fifth of global oil trade. Recent military actions and statements from Tehran have severely rattled supply chains. The result? The price of crude oil has skyrocketed within just a few days. Even though the gas we're pumping today was bought and refined weeks ago, importers eventually pass those higher procurement costs on to consumers. So, it's less about "price gouging," as some mutter at the cash register, and more about the ripple effect of international markets. We felt the first wave back in late February, and it likely won't be the last.

The $2-per-litre mark in sight?

The big question on everyone's mind is: How high will gas prices in Canada go? Experts from the Canadian Fuels Association suggest we could soon see the $2-per-litre mark again. Roland Bilang, the association's director, warns that prices will likely keep climbing in the coming days and weeks. The last time we saw these levels was during the energy crisis following the Ukraine war, when prices briefly shot past $2.20. Then, as now, geopolitical crises mean oil companies cash in – and drivers foot the bill. The Competition Bureau can only watch helplessly, lacking the legal tools to tackle these "opportunistic" price hikes, as was recently made clear in an interview. Energy economist Nicolas Pages shares the gloomy outlook: "Uncertainty remains the biggest price driver – and markets are reacting to it like a Frankenstein's monster that's nearly impossible to control."

The CAA as your guide through the price chaos

But it's not all hopeless. The CAA - Canadian Automobile Association offers an excellent tool with its gas price tracker to help you hunt for deals. Because one thing is clear: CAA gas price comparisons (and similar tools) consistently show just how massive the price differences can be. If you simply pull into the nearest highway rest stop, you'll pay a premium. But with a bit of searching, you can save real money. Here are a few strategies to beat the madness:

• Avoid the highway: Gas stations along major highways are traditionally the most expensive. Prices there can easily top $2, while it's significantly cheaper just a few minutes away in town.
• Use comparison apps: Whether it's the CAA tracker or services like Cheap Fuel Prices — Fillzz – a quick glance at your phone before heading out can save you serious cash. Comparing prices is especially worthwhile near provincial borders or in areas with lots of stations.
• Provincial price differences add up: CAA's 2025 analysis shows that regular and premium gas are cheapest in Alberta and Saskatchewan. It's pricier, however, in Newfoundland and British Columbia. And for maximum savings, some swear by filling up at First Nations reserves, where prices can be significantly lower due to different tax structures.
• Don't be surprised by local variations: Pricing policies are often anything but transparent. While some chains like Petro-Canada openly communicate increases, others are more tight-lipped, pointing to local dealers who set their own prices.

A look at the latest numbers

To put this in perspective: back in early February, the average price for a litre of regular gas was around $1.67. Those days are gone for now. Many stations, including those at convenience stores, have already hiked prices to $1.75. And it's expected to continue. My bet is we'll see that $2 mark in many places within the next two weeks. The situation is fluid, and hopes for a quick resolution to the conflict have unfortunately faded. Uncertainty remains the biggest driver of prices at the pump.

So, stay vigilant, compare prices – you might just find a station that hasn't jacked up its rates yet. In times like these, filling up your tank becomes a strategic task.