A 10 percent tariff on Canadian oil could make fuel more expensive as planting season nears, but geography plays a big role, according to GasBuddy.
“Well, the status is, at least for now, the tariffs are in effect on Canadian energy of ten percent, and that is going to start trickling down to the end-user in the weeks ahead. But there’s certainly a very different situation, depending on where you might live across the U.S. The Northeast - the New England area - generally receives refined products from a Canadian refinery, and those areas will see impacts faster. But in the Midwest, refineries generally process a heavy slate of Canadian crude oil due to the nature of how slowly that crude oil gets into the United States, and then it takes time to be refined. The impacts throughout areas of the Midwest, the Great Lakes, and the Rockies will probably see a much lower-level impact that is much more delayed than compared to what we expect in New England,” said Patrick DeHaan.
Canada sends the U.S. around 4.5 million barrels of oil each day. DeHaan suggests it is not realistic for the U.S. to build its own supply because of existing infrastructure.
Right now, AAA shows a gallon of diesel holding around $3.65 nationwide, which is down $0.01 from a month ago, but around $0.40 cheaper from a year ago. Gasoline is around $3.10 per gallon, down a little more than a quarter from a year ago.
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