Drive
Get Your Fill
a guide to how canadian gas prices are determined
By Carly PeTers
The weaTher and gas
prices: two
things Canadians love to talk about.
And this summer’s record-breaking
heat waves and sky-high prices at the
pump gave us a lot of discuss! In May,
the monthly average gas price reached
a record high of 139.2 cents per litre.
While things are beginning to cool
down as winter approaches, one still
has to wonder: Why do gas prices keep
going up?
“Fuel prices in Canada have been
In SaSkatchewan
Don’t Get
tankeD
track prices at
the pump with caa’s
Gas price monitor
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Visit getgasprices.ca
to find local up-to-
the-minute fuel
prices, so you know
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prices are available
for yorkton,
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current, North
battleford, estevan,
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albert, Regina and
Saskatoon. you can
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prices across the
province and country.
driven upwards by a devaluing of the
Canadian dollar and increases in crude
prices,” explains Suzanne Gray, senior
analyst with Kent Group Ltd., which
provides data, analytics and consulting
services relating to the petroleum
industry. “Gas prices follow the ebb
and flow of crude oil prices, which
are largely determined by market
conditions beyond Canadian borders.
This explains much of the fluctuation
in gas prices over the long term.”
What you pay at the pump is also
affected by wholesale pricing—the
price at which refineries sell gasoline.
That price is influenced by supply-
and-demand conditions due to
seasonality: increased demand in
spring/summer, less in fall/winter.
Though they have altruistic goals,
environmental costs affect gas prices
too. Carbon taxes in Alberta and B.C.,
or Quebec’s cap-and-trade program,
drive up the cost at the pump.
Sales taxes play a big role as well,
and help explain why some provinces
get hit harder than others. As Gray
points out, federal taxes are the same
across Canada, but provincial levies
differ—ranging from 6.2 cents per
litre in the Yukon to 20.5 cents per
litre in Newfoundland. Additionally,
GST/HST rates can vary, fluctuating
from five to 15 percent, depending
on the region.
There are a lot of moving parts
affecting prices and many seem
negative. But there are a few bright
spots on the winter horizon. Barring
any unforeseen crude or logistical
issues, demand tapers and refiners
switch to a cheaper fuel blend in colder
months—meaning you’ll get a break at
the pump and keep a few more bucks
in your wallet this season.
get more
than gaS prIceS
you’ll find tools
and resources to
become more gas
savvy, and learn
useful info like
how prices are
determined, how gas
is made and eco-
driving tips.
CAA saskatchewan
free DownloaD
download caa’s
Gas price monitor at
getgasprices.ca or
through android and
apple app stores.
winter 2018
23