Here’s a breakdown of some factors that determine the price you pay at the pump.
For more information about these factors, please visit our PumpTalk blog.
- Taxes are one of the largest components of Canadian retail pump prices. In 2015, Canadians paid an average of 38.5 cents of tax on every litre of gasoline. This represents almost $20 on a typical 50 litre fill.
- Taxes on gasoline vary significantly by province and in some cases by city. Cities like Montreal and Vancouver implement municipal fuel taxes which contribute to regional differences in pump prices.
Learn how much tax you pay on gasoline
For more information, visit the Canada Revenue Agency website or the Kent Marketing Services website.
- Crude oil is a globally traded commodity and is the base product used to refine gasoline and diesel fuel.
- Canadian producers have no influence over world prices because
our domestic crude oil production is a small fraction of total
- Crude oil prices are influenced by changes in global supply and demand, current inventory levels and geopolitical events.
Refining and Marketing Costs
- This portion of the price covers all costs of operations — such as the costs of refining crude oil into gasoline, transportation and distribution charges, as well as all marketing and operational expenses at the
- Wholesale gasoline is bought and sold on commodity markets, much like crude oil.
- As gasoline is a commodity that flows freely between Canada and the U.S., Canadian wholesale prices — the prices retailers pay — are tied closely to U.S. commodity prices.
- Any significant disruption in supply in the U.S., a market 10 times the size of our Canadian market, can impact wholesale prices throughout North America.
Learn more about wholesale commodity prices
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