Turmoil in Iran, disruptions in global oil markets, and skyrocketing gasoline prices in Canada and beyond echo the events of 1979, triggered by the Iranian Revolution. During that period, the shock to the world’s oil supply led to panic buying and stockpiling of gasoline, causing a surge in oil demand.
Renowned Calgary economist Peter Tertzakian recently uncovered original proofs of gasoline rationing stamps prepared by Canada’s government in response to the crisis. Although the government printed sheets entitling holders to 50 liters of gas per stamp, these stamps were never circulated due to the eventual stabilization of the oil supply.
The possibility of implementing a national rationing system, with priority access for essential services like ambulances and farmers, was considered to ensure equalized fuel access. Tertzakian emphasized that while the rationing stamps were not put into use, they serve as a reminder of the unpredictability of oil shortages.
The ongoing conflict in the Middle East, particularly following the U.S. and Israel’s actions in Iran, has significantly impacted global gas prices. Oil prices have surged above $100 US per barrel since the conflict began on Feb. 28, leading to a notable increase in gasoline prices across Canada.
As nations worldwide grapple with the repercussions of the crisis, some have resorted to gas hoarding and rationing measures. While Canada has not yet implemented such measures, the history of oil crises in the country underscores the potential for gas rationing if global scarcity persists.
Reflecting on past oil crises, Tertzakian highlighted the evolving dynamics of the world economy’s dependence on oil commodities. While North America has strengthened its oil trade infrastructure, potential global shortages could still necessitate gas rationing to ensure equitable access to essential resources.
Looking ahead, Tertzakian outlined potential scenarios where gas rationing could become a reality in Canada, particularly in the face of a physical oil shortage or a significant spike in global oil prices. As discussions surrounding oil reserves and energy security continue, the prospect of gas rationing remains a strategic consideration in the nation’s energy landscape.
