Apr 8, 2026
Rising oil prices driven by conflict in the Middle East are starting to show up in more places than just the gas pump — and increasingly, in the cost of everyday services.
According to analysis from RBC, higher energy prices tend to hit consumers quickly through fuel costs, while also gradually pushing up costs across the broader economy as businesses adjust pricing.
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That dynamic is now becoming more visible, with fuel surcharges and related fees appearing across a growing number of industries — from travel to deliveries to everyday services.
Airlines and travel
Fuel costs are, of course, a significant factor in airline pricing, and they’re playing a greater role today as oil prices jump.
Major carriers like Air Canada and WestJet typically build fuel costs into ticket prices rather than listing a separate surcharge. That means travellers may not see a specific line item, but higher fuel prices are still reflected in fares, particularly on long-haul or last-minute bookings.
However, according to CBC (1), Air Canada Vacations, which specializes in travel packages, will be adding a $50-per-passenger fuel surcharge to all of its warm-weather destinations, as of April 6.
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Shipping and deliveries
Fuel surcharges are more transparent — and more dynamic — in the shipping sector.
Companies like Canada Post, FedEx and UPS regularly adjust fuel surcharges based on current diesel or gasoline prices.
According to CBC News, Canada Post has introduced temporary fuel surcharges of 35% on domestic services, 20.75% on international parcels and 18.75% on international packets between March 30 and April 5.
Meanwhile, Amazon is also passing on higher fuel costs, applying a 3.5% surcharge to fulfillment fees for Canadian sellers using its Fulfillment by Amazon program starting April 17.
From ride-hailing to home services, the fees add up
Ride-hailing and delivery companies are starting to respond to rising fuel costs, CBC notes — but for now, much of that pressure is being absorbed behind the scenes rather than passed directly on to customers.
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With average gas prices in Canada reaching $1.76 per litre, up 22 cents year-over-year, companies such as DoorDash and Lyft have introduced temporary support programs to help drivers offset higher fuel expenses. DoorDash, for example, is offering up to $36 per week based on distance driven, while Lyft has rolled out a similar initiative.
At the same time, Uber says it is increasing cash-back rewards on fuel purchases for drivers rather than adding new fees for riders, signalling a reluctance — at least for now — to introduce visible fuel surcharges.
The approach suggests companies are trying to strike a balance between supporting drivers facing higher operating costs, while trying to avoid additional charges that could dampen demand. But if fuel prices remain elevated, that balance may become harder to maintain, raising the likelihood that some of those costs are eventually passed on more directly to consumers.
While the broader economic impact of higher oil prices can be mixed — benefiting energy-producing regions while weighing on consumers — the effect on households is more straightforward. With more money being spent on gas and fuel, there’s less room in budgets for other goods and services, a dynamic that becomes more pronounced the longer prices stay elevated.
According to a recent economics report from RBC, “higher energy prices mechanically raise headline inflation, but lower household purchasing power — potentially weakening demand for non-energy goods and services and widening the economy-wide output gap.” The report concludes that while the current escalation of oil prices is significant, it is still too early to know whether or not that requires a response from the Bank of Canada.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CBC News (1)
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
