Stabilizing world markets worried regarding whether Russian oil and gas will continue to flow is crucial to reducing soaring gasoline prices, says Canada’s Natural Resources Minister Jonathan Wilkinson.
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Since Russia is a major oil and gas producer for European countries, the severe sanctions imposed on the Russian economy in order to punish its leaders for invading Ukraine since February 24 have caused the price of gasoline everywhere on the planet.
The majority of Western European countries are still working to find ways to replace the Russian oil and gas they currently import with other sources, Minister Wilkinson told the “Global News”.
Although Canada and the United States import relatively little of these resources from Russia, North American consumers are feeling the brunt of the unprecedented price spike.
Alberta Premier Jason Kenney announced last week that the province would stop collecting the fuel tax when the price of oil rises above $90 a barrel. He also said the province will offer a rebate on electricity costs.
According to the “Global News”, Minister Wilkinson did not specify whether the federal government in turn intended to compensate Canadians.
“I recognize that this is a daunting challenge for many Canadians and we need to figure out how best to address it,” he said.
The opportunity might serve to encourage more people to transition to zero-emission vehicles or other forms of energy that aren’t as price-sensitive as oil, Wilkinson said.
“It may involve other types of fuel,” the minister added.
Both the United States and Canada banned the import of Russian oil and gas following President Vladimir Putin’s invasion of Ukraine, which is a sovereign democracy.
Canada has the third-largest oil and gas reserves in the world, but producers have not increased production since the 2020 pandemic-caused oil price crash.