Fuel costs on the rise as latest geopolitical turmoil drives up crude oil prices

Fuel costs are on the rise in Canada as geopolitical turmoil drives the price of crude oil to its highest level in more than a month.

Gasbuddy.com, which crowdsources pump price data from across Canada and the U.S, says the Canadian national average now sits above $1.80 a litre- a two-cent increase from a day earlier and an eight-cent bump from a week ago.

Patrick De Haan, head of petroleum analysis at Gasbuddy, says that could rise by another five to 10 cents over the next week or two as the full impact of the crude price jump works its way through the supply chain.

West Texas Intermediate crude for September delivery is hovering above US$92 a barrel, an almost six per cent increase from a day earlier, while the benchmark for seaborne light crude is edging into the triple digits.

De Haan says the price of another fuel derived from crude -diesel-could reach a new record in the coming weeks, driving up costs for businesses that rely on tractors, trucks, railways and heavy machinery.

The rise in crude prices comes as Ukraine targets Russian refineries and the U.S.-Iran conflict intensifies with Houthi rebels backed by Iran disrupting a key Red Sea shipping route.