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What determines the price of gasoline?

Category: Gas Price Details

Gas prices in Canada are determined by several factors, such as:

  • the price of crude oil, which is a globally traded commodity and is influenced by changes in supply and demand, inventory levels, and geopolitical events.
  • the cost of refining crude oil into gasoline, which depends on the type and quality of crude oil, the capacity and efficiency of refineries, and the environmental standards and regulations.
  • the distribution and marketing costs, which include the transportation, storage, and retailing of gasoline, and vary by region and season
  • the taxes, which are imposed by the federal, provincial, and municipal governments, and differ by location and type of fuel.

These factors can fluctuate over time and place, creating variations in gas prices across Canada.

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