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Food does not move by magic. In Canada, it moves largely by diesel.

CHARLEBOIS: Ottawa cut the diesel tax, but your grocery bill will still go up Back to video

Diesel powers tractors and combines. It carries ingredients to processors, distribution centres and refrigerated loads to restaurants and grocers. It supports fishing, storage and last-mile delivery. When diesel rises sharply, the food system is not hit once. The shock travels through the chain several times before reaching consumers.

That is why diesel markets should keep Ottawa awake. September rack quotes placed diesel above $2.10 per litre in Central and Eastern Canada, roughly $2.35 to $2.40 across the Prairies and above $2.48 at British Columbia terminals. Regional prices differ, but diesel is brutally expensive at the wrong time for agriculture and food distribution.

Costs take months to show up

Farmers feel it first. Harvest is not discretionary. A producer cannot park a combine and wait for energy markets to settle. Crops move when weather allows, not when fuel becomes affordable. Farmers burn cash now, while cost recovery may not arrive until a later contract or crop cycle. This is a working-capital problem.

Processors come next. They pay for ingredients and freight, plus packaging, refrigeration and agricultural inputs. Smaller processors and independent distributors are exposed. They lack the........

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