A petroleum industry analyst is warning that a spike in diesel prices brought on by geopolitical tensions could cause food prices in Canada to rise dramatically.
As the situation in Ukraine continues to escalate, ramifications of Putin's actions are being felt across the world.
Gas prices have risen as of late, with diesel following suit. The increased cost of the latter, which is relied upon for the ground transportation of goods, has many concerned over potential costs to consumers.
Gas prices rose seven cents overnight, with another increase of seven cents expected into tomorrow. Diesel has risen as well, up five cents this week, with a seven cent increase expected into Thursday.
"The reality," he said, "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."
According to the Toronto Sun, since the invasion of Ukraine, oil has risen from US$92 per barrel to $109, with no slow down in sight.
"I am not an agro-economist," McTeague continued, "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 per cent increase in food prices as a result of these increases in diesel and we haven't even started the planting season yet."
McTeague said that he anticipates that the price of gas in the greater Toronto area will hit upwards of $2 per litre in the coming weeks.
As CP24 reports, McTeague also suggested that the rising cost of fuel could lead to inflation the likes of which we have "probably not seen in our in our lifetime."
Politicians have in response voiced their concern. Brampton Mayor Patrick Brown, for example, took aim at the Trudeau government's carbon tax, which is set to rise from $40 per tonne to $50 at the end of March.
"There should be no new burdens, no new taxes as we try to get through this difficult period," Brown said.