Spiking gasoline prices adding fuel to inflation

CALGARY — Canadian businesses struggling to recover from the pandemic are facing another headwind in the form of record-high gasoline prices.

The average weighted national retail price for regular gasoline in Canada hit $1.45 per litre this week. That’s up more than 40 cents year-over-year and the highest weekly average price on record.

The Canadian Federation of Independent Business said many of its members are facing increased delivery and shipping costs due to the high cost of gasoline.

It’s the latest strain for business owners who are already dealing with higher costs for everything from heating to building supplies to labour.

A report from CIBC Capital Markets says rising gasoline prices are driven by high crude oil prices and will add more fuel to the current spike in inflation.

But the report also says higher oil prices are good for Canadian economic growth. It says higher prices for Canadian crude exports will raise incomes and government revenues.