‘Terrible parallel’: Archived stamps reveal Canada was ready to ration gas in 1979 oil crisis

Turmoil in Iran, a major disruption in world oil markets and a massive spike in gasoline prices in Canada and beyond. What motorists and governments face in 2026 is similar to what they faced in 1979, sparked by the Iranian Revolution.

At that time, a shock to global oil supply caused consumers around the world to panic buy and hoard gas, causing demand for oil to increase.

As Calgary economist Peter Tertzakian recently found out, this prompted the Canadian government to seriously consider conserving oil through gasoline rationing stamps.

It even printed sheets in preparation for that drastic step, giving a holder the right to 50 liters of gas.

When the energy economist and founder of Studio.Energy saw the original proofs of the stamps in the archives of Natural Resources Canada, he was amazed.

He said, “I was shown them and I went, wow. I mean, it’s like a blast from the past.”

A national rationing system This would have allowed essential services like ambulances and farmers to get priority access to gas. Others will be able to buy 50 liters per stamp, which is designed to equalize access to fuel, Tertzakian said.

While Ottawa never finished putting the stamps into circulation because supplies eventually stagnated, Tertzakian said the evidence — and the oil crises of the 1970s and ’80s — are a reminder that anything can happen in an oil shortage.

It may also foreshadow a possible gas-saving measure in the current context of war in the Middle East.

He said, “Basically, the geography is the same. At that time oil cuts of several million dollars per day had driven up prices significantly, similar to what we are seeing today, and Canada printing these stamps has the potential to reduce prices significantly.”

“There’s an eerie similarity (today). Same place, same circumstances, different eras.”

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Since America and Israel have initiated the attack on Iran Ayatollah Ali KhameneiThe increase in the sector has had a profound impact on pump prices globally.

oil prices are Reached above US$100 per barrel Since the war began on Feb. 28, average gasoline prices across Canada now average $1.68 per litre, up sharply from $1.29 last month. Canadian Automobile Association.

Many nations have already implemented Gas hoarding and rationing measures.

Much of what is exported through the Strait of Hormuz is exported to Asia, prompting residents in countries such as Sri Lanka, the Philippines and Vietnam to save gas by working from home.

Although no such measure has yet been implemented by Canada, oil rationing is not unprecedented in the country’s history, and according to Tertzakian, it is not necessarily off the table.

Rationing during the oil crisis of the 70s

In the 1970s, Americans – who had become accustomed to cheap and abundant oil supplies – found their wallets hit hard.

According to the Smithsonian National Postal Museum, some Arab members of the Organization of the Petroleum Exporting Countries (OPEC) blocked the flow of oil to the US to protest the country’s support for Israel in the Yom Kippur War with Syria and Egypt.

Americans from coast to coast waited long lineup Around the block to fill your tank. One “Odd-Even Rationing” The system was adopted by several states: if the last digit on the license plate was odd, they could only get gas on odd-numbered days, and even numbers on even-numbered days.

To further cut energy consumption amid the national gas crisis, then US President Richard Nixon signed a short-term year-long daylight Saving Time It was changed into law in January 1974. The goal was to maximize evening sunlight and minimize demand for lighting and heating. Canada also considered thisBut many provinces eventually shut down the idea.

At the end of that decade, during the Iranian Revolution, which ousted that country’s Shah in favor of an Islamic republic, the country’s oil production Declined by 4.8 million barrels per day By January that year, or about seven percent of world production at that time.

A dig through the CBC News archives reveals report From July 3, 1979, which credited the uninterrupted delivery of Canadian western crude production and oil imports for saving Canadians from gas rationing at the time.

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On the other hand, according to reports, US refineries could not meet the huge demand for oil and were ordered to stockpile heating supplies for next winter.

While the Canadian government had previously implemented gas rationing measures in World War II, it had never implemented the measures in the 1970s and 80s.

A 1979 Globe and Mail article stated that Parliament introduced the Energy Supply Emergency Act to enforce rationing if necessary, including “some form of ration card or ticket”, but the federal minister at the time said this power was unlikely to ever be needed.

However, Canadians near the US border felt the effects of the US oil shortage more directly.

On May 9, 1979, rationing went into effect in the state of California, leading to long lines at local gas stations.

Some drivers facing domestic shortages in North American states chose to head to the border rather than head north to fill their tanks during gas shortages. Locals were less keen on traffic from south of the border, CBC News reported.

An unnamed driver waiting in line said, “I think we should…have a separate line for Americans.” “I only have an hour until lunch, I’m not going to sit around the corner waiting for my gas. We should get plenty of it.”

gas rationing ticket They were also produced in the US in that decade, although like Canada, they were never released. According to the Smithsonian National Postal Museum, approximately five billion gas rationing coupons were produced in response to the 1973–74 oil crisis.

These stamps featured a bust of George Washington and were valued at “one unit”, a generic term that could be defined by the US government to meet the demands of the times.

Looking at history, Tertzakian said, what’s different this time is that the world economy is even more dependent on oil commodities.

While North America is more self-sufficient today as oil trade has increased between Canada and the US versus the Middle East, “the disruption of world trade routes and supply chains means that … if there is a global shortage, anything can happen in terms of how we look at these critical commodities,” he said.

Could gas rationing become a reality?

Since Canadians are currently facing rising gas prices, Tertzakian said there are two possible ways that gas rationing could manifest as a reality in Canada’s near future.

One, he said, if there is a shortage of physical oil in Canada – to which a region like Central Canada may be more sensitive – then rationing will be required.

“But the other possibility is that if there is a global shortage … the price will go much higher (and) if the price gets to $150 a barrel or $200 a barrel,” Tertzakian said. “Now you’ve got the justification for rationing so that everyone in society has equal access to the commodity – not just the rich who can buy at $5 a litre.”

In 1979, the International Energy Agency (IEA) agreed to reduce oil demand by two million barrels per day. An effort to help bring down rising prices. IEA had agreed on this only last week release 400 million barrels of oil From its strategic reserves.

“We fell into this trap about 50 years ago…after the crisis passed, we became kind of desensitized to this whole thing,” Tertzakian said.

“And since then whenever we’ve been up close and personal with a scenario like this, we’ve brushed our eyebrows and said, you know, OK, we dodged that bullet and then (it’s) kind of back to normal,” he said.

“But I think we have to think long-term and strategically about all the important things Canada has to offer … and in times of crisis we need to think about how we can share and help others.”