Experts are linking rising gasoline prices in the U.S. northeast to President Donald Trump’s tariffs on Canadian energy imports, but they warn the trend may also hurt Atlantic Canada’s energy producers.
According to Canada’s consulate general in Boston, eight of every 10 cars on the road in New England use fuel from Canadian petroleum producers, and 90 per cent of the jet fuel used at Logan Airport in Boston also comes from Canada.
One of the region’s biggest suppliers of gasoline is the Irving Oil refinery in Saint John, N.B., which is the largest refinery in Canada.
Patrick De Haan, head of petroleum analysis at Dallas-based GasBuddy, says gas prices are expected to rise an average of 20 cents per gallon in the U.S. northeast over the next few weeks as the 10 per cent energy tariff is passed on to consumers.
As of today, the American Automobile Association’s gas price tracker showed a two-cent per gallon average increase in Maine in a single day.
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De Haan says the northeast states won’t immediately find an alternative to Irving Oil’s Saint John Refinery, which ships 80 per cent of its refined products south of the border.
But De Haan says that could change over time if buyers move away from Atlantic Canadian imports to refineries in Europe, Nigeria or within the United States.
Robert Huish, a professor at Dalhousie University’s department of international development studies, says it won’t be easy for Atlantic Canada’s energy exporters to find alternative markets to the New England states.
A spokesperson for Irving Oil didn’t reply to a request for comment.
This report by The Canadian Press was first published March 5, 2025.
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