Canada's Trucking Industry Faces a Double Crisis: Prolonged Freight Slowdown Followed by Rising Diesel Costs
CTOA warns rising diesel prices, now exceeding $2.39 per litre in Toronto, are adding pressure to small carriers and independent operators already recovering from a prolonged industry downturn
MISSISSAUGA, ON, March 30, 2026 /CNW/ - The Canadian Truck Operators Association (CTOA) is raising concerns over rising diesel prices, warning that increasing fuel costs are placing renewed pressure on a trucking industry that is still in the early stages of recovery following a prolonged slowdown from 2022 through 2025.
Recent increases in global oil prices, driven by escalating geopolitical tensions in the Middle East affecting key energy supply routes, are beginning to translate into higher diesel costs across Canada. For the trucking sector, where fuel remains one of the largest operating expenses, this trend is creating immediate financial strain, particularly for small and mid-sized carriers.
Diesel prices in major markets such as the Greater Toronto Area have recently exceeded $2.39 per litre, levels not seen since 2022. For many operators, this represents a significant increase in day-to-day operating costs.
While larger carriers may have mechanisms to manage fuel volatility, smaller fleets and independent operators often have limited ability to pass on sudden cost increases, creating immediate pressure on margins and cash flow.
"Canada's trucking industry has gone through several difficult years, and many carriers are only now beginning to stabilize," said Tej Dulat, spokesperson for CTOA. "A sudden increase in fuel costs at this stage creates real pressure for businesses that are already operating on thin margins. This is not about avoiding normal market cycles, it is about recognizing the impact of external cost shocks on an essential industry."
A Fragile Recovery at Risk
The current increase in diesel prices comes at a sensitive time for the industry.
Between 2022 and 2025, Canadian trucking experienced a prolonged period of weak freight rates, excess capacity, and rising operational costs. Many small carriers and owner-operators managed this period by reducing expenses, deferring investments, and operating with minimal financial reserves.
While early signs of stabilization have begun to emerge in 2026, the recovery remains uneven. Rising fuel costs now risk slowing that recovery, particularly for operators with limited ability to absorb additional cost increases.
The View from the Ground
"I run four trucks out of the GTA. Fuel has gone from about $1,600 to $2,300 per truck, that's a $700 increase every fill. I am transporting essential goods and can't stop operating, but after three difficult years, there is very little left to absorb these costs. My line of credit is already stretched."
Jagroop, CTOA member, Greater Toronto Area
"I have been operating for 14 years, and have never seen two pressures hit at the same time like this. After years of low freight rates, diesel is now above $2.40 with no clear timeline for relief. This goes beyond normal market conditions, it is a situation operators cannot plan for or control.
Singh, CTOA member, Hamilton
Broader Supply Chain Impact
The impact of rising diesel prices extends beyond the trucking industry.
Trucking plays a central role in Canada's economy, with the majority of goods transported by truck at some stage of the supply chain. As transportation costs increase, those costs can flow through to businesses and consumers in the form of higher prices for goods and services.
Fuel volatility therefore has implications not only for carriers, but for overall supply chain stability and affordability.
CTOA Encourages Consideration of Targeted Measures
CTOA is encouraging the Government of Canada and the Government of Ontario to consider practical, short-term measures to support industry stability during periods of fuel volatility:
- Temporary diesel tax relief for commercial carriers
- Targeted bridge financing access for small carriers and owner-operators
- Review and update of fuel surcharge mechanisms
- Industry-government roundtable on trucking sector stability
- Short-term flexibility in compliance implementation for small carriers
CTOA emphasizes that the industry is not seeking long-term subsidies, but targeted, short-term support to help stabilize an essential sector during a period of exceptional cost volatility.
Looking Ahead
CTOA will continue to monitor developments and engage with industry stakeholders to assess the impact of rising fuel costs across regions and business segments.
The association remains focused on supporting a stable, resilient trucking sector that can continue to meet the needs of Canada's economy and supply chains.
About CTOA
The Canadian Truck Operators Association (CTOA) is a national organization representing trucking companies, owner-operators, and industry stakeholders across Canada. CTOA works to support a strong and sustainable transportation sector through industry engagement, awareness, and collaboration on key issues affecting supply chains and business operations.
SOURCE Canada Truck Operators Association
Media Contact: Canadian Truck Operators Association (CTOA), [email protected], +1 416-443-0042, thectoa.ca
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