Ontario Fuel Prices Rise as Strait of Hormuz Remains Closed

Fuel prices in Ontario, including the Greater Toronto Area and Waterloo Region, are projected to increase on Wednesday, August 12 and 13, 2026. Dan McTeague, president of Canadians for Affordable Energy, predicts regular gasoline will rise by six to seven cents per litre to an average of 168.9 cents, while diesel will climb by 10 to 12 cents to 220.9 cents per litre.

The price spike follows a brief decline fueled by hopes of a diplomatic resolution to the conflict involving the United States, Israel, and Iran. While President Donald Trump previously suggested a deal to end Middle East hostilities was imminent, recent demands issued by Iran have renewed market fears that the Strait of Hormuz will remain closed. This waterway is critical for 25% of seaborne oil trade.

The current volatility stems from a conflict that began February 28, when the United States and Israel attacked Iran, leading to retaliatory strikes and mutual blockades. McTeague attributes the current price hikes to diminishing global fuel supplies and depleted emergency reserves, further exacerbated by Houthi attacks in the Bab-el-Mandeb strait and the Russia-Ukraine war. He warns that these supply constraints could trigger a broader petrochemical shortage affecting pharmaceuticals and plastics.