Diesel Shock Hits Canadian Truckers as Fuel Costs Push Up Freight Prices
Diesel Shock Hits Canadian Truckers as Fuel Costs Push Up Freight Prices
TORONTO — Canada’s trucking industry is facing a sharp increase in fuel costs, putting pressure on carriers and raising concerns about higher prices for goods across the country.
The average retail price of diesel in Canada climbed above $2.64 per litre in late September, according to Natural Resources Canada. That represents an increase of roughly 60% from levels before the latest Middle East conflict and about 15% above the previous record reached in 2022.
For trucking companies, the increase is hitting one of their largest operating expenses. Fuel costs can quickly add thousands of dollars to the cost of running a fleet, particularly for long-haul carriers that travel thousands of kilometres each week.
The impact is already appearing in transportation prices. Statistics Canada reported that prices for truck transportation increased 9.5% year over year in the second quarter of 2026, while producer prices for diesel rose between 40.3% and 58.8%, depending on the region, between July 2025 and July 2026.
Pressure on small trucking companies
Smaller carriers and independent owner-operators can be particularly exposed to sudden fuel-price increases because they have fewer vehicles over which to spread costs and may have less negotiating power with customers.
Mike Millian, president of the Private Motor Truck Council of Canada, told The Canadian Press that a round trip by a semi truck between Montreal and Toronto that would have cost roughly $850 in fuel and related transportation expenses at the beginning of the year could cost about $1,400 at current prices.
Some carriers are responding through fuel surcharges, passing part of the additional expense on to customers.
That pressure is being felt throughout the transportation system. Statistics Canada found that 65.8% of transportation and warehousing businesses surveyed in the second quarter identified energy costs as an expected obstacle.
Costs move beyond the trucking industry
The effects do not stop at trucking companies.
Most consumer goods must be transported at some point before reaching stores, warehouses or customers. Higher freight costs can therefore affect retailers, manufacturers, farmers and wholesalers, with some of those additional costs eventually reaching consumers.
Statistics Canada reported that nearly one-quarter of transportation and warehousing businesses expected to increase their service prices in the third quarter. Businesses in retail and wholesale also reported expectations of higher prices.
The trucking industry is warning that groceries, construction materials, clothing and other everyday products could become more expensive if elevated diesel prices persist.
Aaron Dolyniuk of the Manitoba Trucking Association said the higher fuel costs ultimately affect consumers because trucks remain an important part of the final stage of moving goods.
A broader economic concern
The fuel shock comes at a difficult time for Canada's economy. Higher transportation costs can add to inflationary pressure while businesses already face higher labour, financing and operating expenses.
The reasons behind the diesel increase extend beyond Canada. Disruptions to global energy supplies, including those linked to conflict and disruptions around the Strait of Hormuz, have pushed energy prices higher and tightened fuel markets.
The longer fuel prices remain elevated, the greater the pressure on trucking companies to increase freight rates or reduce costs elsewhere.
Some companies are also looking at alternatives to diesel. In Ontario, one electric Class 8 truck pilot reported a 44.7% reduction in diesel costs on a short-haul Toronto-area route. However, electric trucks still face challenges involving charging infrastructure, range, maintenance and deployment costs.
For Canada's trucking industry, the immediate challenge is more straightforward: keeping freight moving while absorbing a fuel bill that has risen dramatically.
And for consumers, the concern is that the cost of filling a truck today could eventually show up on the price tag of the goods those trucks deliver.