Depending on where you live in Canada the spread from regular to premium gasoline in the wholesale price for gas stations ranges between 6 and 11 cents a litre. However many stations charge a difference of 32 cents a litre between the two blends. The wider difference commonly seen in pump’s prices between regular and premium, is the markup gas stations charge minus GST/HST and the wholesale price difference. For a more complete explanation see:
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Gas prices in Town A, might still be higher than in Town B despite lower transportation taxes due to several factors:
Retail Margins: Gas stations in Town A may have higher retail margins to cover operational costs, such as rent, utilities, and credit card fees, which can vary significantly between locations.
Supply and Demand: Local demand for fuel and the availability of supply can influence prices. If Town A has fewer suppliers or higher demand relative to supply, prices may rise.
Competition: The level of competition among gas stations in Town A versus Town B can impact pricing. More competition in Town B might drive prices down.
Distribution Costs: Even though Town A has lower transportation taxes, the cost of transporting fuel to Town A might be higher due to logistics or distance from refineries.
Market Dynamics: External factors like global oil prices, currency exchange rates, and regional economic conditions can also play a role.
It’s a complex interplay of these factors that determines the final price at the pump.