Fuel prices, especially diesel, have trended higher recently.
Many point to the conflict in Iran and specifically the blockade of the Strait of Hormuz – a key crude oil exporting route in the Middle East – as the catalyst for prices to spike almost instantly.
According to GlobalPetroPrices.com, the average price of diesel in Saskatchewan – between the period of December 22, 2025 and March 30, 2026 – was $1.64 per litre. The lowest price in that period was $1.45 per litre on January 12, 2026, while the highest price was $2.04 per litre on March 23, 2026.
Prices will vary by supplier, region, and supply-and-demand.
What the Canadian Fuels Association has noticed
The Vice-President of the Canadian Fuels Association says diesel prices are currently at historical levels in Canada.
Carol Montreuil has observed a lot of places across the country have diesel prices above $2.00 a litre with some in the range of $2.25 to $2.50 a litre.
To his knowledge, that's not the case yet in Saskatchewan, but the trend isn't favourable.
"And the impacts being felt on diesel are actually worse in percentage-wise than what we're seeing on the raw material, the crude prices, simply because of supply and demand given the high demand on diesel prices. And unfortunately, it's been felt like in all provinces across the country." he said.
He believes people are in the right to be concerned about how expensive fuel is nowadays.
Another concern is possible escalation in the Iranian conflict, he added.
During an address last Wednesday, U.S. President Donald Trump indicated they are "on track to complete all of America's military objectives shortly."
"We are going to hit them extremely hard over the next two to three weeks," Trump stated.
Montreuil said while Canada isn't immune from the increase in price, the country is better insulated from the impact compared to others.
"Canada is a major producer of oil and finished products, so is the United States. So we are in a privileged position where from a volume point of view, in terms of having access to liters and barrels, it's not an issue compared to some other countries that have already introduced rationing in their respective countries." he said.
Asked if the conflict is a wake-up call for the federal government to see that Canada can be more of a bigger player on energy than what it is right now, Montreuil said there's no doubt, adding now is the time to act.
"So if our country was better connected west to east in terms of making sure we have access to these markets and have the facilities to export our resources to these countries that are in need, Canada would highly benefit from that."
How this could affect farmers
Chief Agricultural Editor of SaskAgToday.com Kevin Hursh looked at diesel prices forecast in the 2026 Crop Planning Guide, released by the Saskatchewan Ministry of Agriculture.
It assumed a price of $1.18 for farm diesel, Hursh noted.
"If you go back through some of the numbers, that price was about right until the end of February when the Middle East War broke out." he said.
As for how this will affect farm expenses, Hursh used a 5-thousand acre farm as an example.
"The crop planning guide pegged the cost for all field operations from $16 an acre to $26 an acre, depending upon which soil zone you're in and which crop you're growing. With that increase, those numbers go up by $6 to $9 an acre. On average, your increase in price is going to add $7.50 an acre to your farm fuel costs for the season. On a 5,000-acre farm, that's an additional $37,500. It's not small at all. There's also a lot of spin-off charges related to diesel that will also be higher."
There's also diesel formulated for the wintertime or summertime to consider, Hursh said, but the need varies from farm to farm.
" Something else you have to watch for is that in the wintertime, there's winter diesel which is thinner and flows better. Producers for field operations will want summer diesel, but it's my understanding that as long as the temperature isn't too cold, you can still get deliveries of summer diesel even in the wintertime as long as the weather cooperates.
"In this case, there's going to be a lot of producers looking at it and saying, 'If we're going to see wild price swings like this, maybe we should have more diesel storage on the farm. Maybe we should be watching prices and price trends and trying to buy when the price is lower.' Producers have been doing that for a long time with fertilizer, and there are some regular fertilizer price swings that are predictable to a certain degree over a lot of years. I'm not sure the same always exists in diesel fuel, but I think there'll be more producers looking at it."
A company perspective
The Executive Vice President and Chief Operating Officer of UFA doesn't see the price for gasoline and diesel coming down anytime soon.
Don Smith says he's seen prices of diesel above $1.50 a litre and until the conflict ends, prices could climb more but it's hard to predict.
"We're essentially a reseller, you know, a wholesale type seller of fuel, and so when prices go up, our prices go up., and when they go down, we go down."
But from a company perspective, Smith said UFA is prepared to handle current challenges.
"People are happy when companies like UFA can provide some fixed price options, which some people have taken advantage of," he said.
"There is that concern and people are really trying to manage these prices as best as possible, especially heading into what always is an uncertain spring.
"When prices are high, oftentimes people go, 'Boy, I don't want to pay a little bit more even, you know, for that product.' But if it saves you in terms of fuel efficiency…the return that you get on it is that much more. So, you know, I would say, make sure that you are using the right fuel for your fuel application."
He says UFA has a diversified supply of fuel for customers so they can meet demand.
