Drivers in Ontario and Quebec are experiencing a fuel shortage that will ultimately affect more things than transportation. Gas prices have been erratic the last year or so and it will lead to increased prices of goods. The cost to transport something greatly affects the selling price of an item, so when something is imported from overseas, its high price is calculated by travel, packaging, and fuel costs. If the gasoline prices are high, it will affect the inflation prices but it shouldn’t last long if things improve quickly.

 

There was a fire at Imperial Oil’s Nanticoke, Ontario refinery on February 15th, 2007 which affected many gas stations in Ontario, and caused a strike by the workers of CNR. Montreal East Refinery for Shell Canada had an equipment problem and reported reduced production and caused shortages in Ontario and Quebec. Since there is a shortage of supply, many gas stations have run out of gas entirely, and other stations are limiting the amount of gas a person can buy.

 

Trucks transport 90% of all products and food in Ontario and this is going to affect prices of those products greatly. These trucks carrying goods to other provinces will have higher transportation prices. The raise of prices will depend on how much of a shortage there is and fuel prices.