According to the Canadian Taxpayers Federation, the federal carbon tax adds 11 cents per litre for gasoline. This means that if the tax is dropped, you could save 11 cents for every litre of gasoline you buy. For example, if you fill up a 50-litre tank, you could save $5.50. However, this is only an estimate, and the actual savings may vary depending on other factors, such as provincial taxes, market prices, and regional differences.
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.
In general, gas prices tend to be lower at the beginning of the week. However, this can vary and is influenced by several factors such as regional taxes, the level of competition, the amount that outlet sells, and the type and location of stations. It’s always a good idea to keep an eye on Gas Wizard for the most accurate and up-to-date information
Taxes account for the main difference as every province in Canada has differing taxes on fuel. Differences between gas stations in the same city are typically the result of some gasbars adjusting their retail margins, which they need to cover the costs associated with running their site and honouring credit cards which often cost them 2-6 cents a litre depending on the rewards percentage.
While Dan is the Gas Wizard, he does not magically set the gas prices. Instead, he uses his deep knowledge of the energy industry to make accurate predictions as to what the upcoming prices will be. 4. What determines the price of gasoline?