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Rising gas prices have governments, companies stepping in

Ben Cousins
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4 min read
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⚡ Quantum Brief
War-driven fuel spikes hit record highs, with Canadian gas prices averaging 172.4 cents per litre as of March 23, 2026, following escalated Iran conflicts disrupting global oil markets. The federal government announced financial aid for farmers, offering Farm Credit Canada borrowers up to $500,000 in additional credit amid soaring fertilizer costs (up 40% in one week) and fuel prices. DoorDash introduced a temporary driver subsidy—36 cents per litre in gas savings (capped at $36/week)—without raising customer prices, effective March 23 to April 25. Political pressure mounts as the Canadian Taxpayer Federation demands scrapping carbon and gas taxes (up to 65 cents/litre in some cities), but Alberta rejected cuts, citing negligible local impact. A five-day U.S.-Iran ceasefire triggered a 14% oil price drop, offering potential pump relief, while CAA urged fuel-efficient driving to mitigate costs.
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A customer refuels his car at a gas station in downtown Zagreb, Croatia on March 23, 2026. Photo by MARKO PERKOV / AFP via Getty ImagesArticle contentRising fuel prices due to the war in Iran have some companies and the federal government offering financial relief.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentFor example, DoorDash Inc. on Monday said it would offer its drivers additional pay equivalent to gas savings of 36 cents per litre, up to $36 per week between March 23 and April 25. It also said the program will not impact customer prices.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentGas prices reached an average of 172.4 cents per litre on Monday, according to the Canadian Automobile Association (CAA).Article contentArticle contentLast week, the federal government said it would offer financial aid to Canadian farmers and agricultural businesses dealing with the rise in gas and fertilizer prices.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentUnder the plan, Farm Credit Canada borrowers could receive an additional line of credit worth up to $500,000.Article contentNitrogen fertilizer prices have climbed more than 40 per cent in the past week.Article contentBut some are calling for even more action.Article contentThe Canadian Taxpayer Federation last week called on both the federal and provincial governments to scrap the carbon tax and reduce gas taxes to help lower costs at the pump. It said gas taxes amount to about 65 cents per litre in some Canadian cities.Article content“Drivers are feeling the pain of high gas prices and taxes are making things more expensive,” Franco Terrazzano, CTF federal director, said in a news release. “Canadians even pay taxes on top of taxes when they fuel up. Politicians can make life easier for taxpayers by cutting gas taxes.”Article contentBut Alberta Premier Danielle Smith told her weekly radio program listeners not to expect any gas tax breaks in the near term, mostly because gas taxes in the province are only about 13 cents per litre.Article contentArticle content“We could take that off, but you’ll still be facing the high prices at the pump because the world prices are just out of our control,” she said.Article contentRead More Why some gas stations cost more than others War in Iran is reshaping the global gas market for years to come Article contentSome relief at the pumps may be on the way, however, as United States President Donald Trumpannounced a five-day halt on attacks against Iran. Oil prices plunged 14 per cent following the announcement.Article contentIn the meantime, CAA recommends accelerating smoothly, reducing speed and maintaining vehicle maintenance to save on gas.Article content• Email: bcousins@postmedia.comArticle contentTrending Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canadian housing bears now have nine reasons backing them up Mortgages TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Canada not tracking foreign students after visas lapse, auditor general says Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Subscriber only. Hey Canadians, want to build a pipeline? Your pension might just help you do it Subscriber only Investor Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canadian housing bears now have nine reasons backing them up Mortgages TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Canada not tracking foreign students after visas lapse, auditor general says Economy

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Source: Financial Post

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