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Canada's Gasoline Prices - Understanding Changing Prices

There are several factors that affect the prices at the pumps in Canada. Some prices might change day to day or pump to pump, or even province to province.

It’s hard to keep up, but below is some basic information that can be used to understand the fuel prices at gas stations.

The price at the pump for a litre of gasoline is calculated by the price of crude oil, the cost of refining that crude, marketing and distribution costs, taxes and, of course, profits to the seller (considering the people/company who extract the oil all the way to the pump with the end product).

Prices vary from province to province due to the cost of transportation and taxes provincial and municipal.

The amount of fuel a station can sell may also affect end price. Potentially, a station that sells more fuel and other products, may be able to offer their products at a lower price than a station that sells less fuel.



A strategy that some gas station retail sites use is to offer food, car washes, personal items, lottery, etc. to be in a better position to reduce the revenue they need from their fuel sales to be profitable.

Usually, there are 4 costs that go into the pump prices in gas stations: crude oil, taxes, refiner margin, and marketing margin.

"According to Shell’s website, they break down the prices on the pumps as follows:
40 - 55 per cent is crude oil costs (the raw material for making gasoline and diesel fuel)
25 - 35 per cent is federal, provincial and municipal taxes and the GST
10 - 25 per cent is the refiner's margin (the difference between what it costs to buy crude oil and the price refined gasoline sells for in the wholesale market which, in turn, is influenced by supply and demand)
4 - 6 per cent is the marketing (or retail) margin that covers retail stations’ expenses and profits."
(Source: https://www.shell.ca/en_ca/motorists/understanding-fuel-pricing.html)

If you want more information, or want updated information you can visit these sites:
Fuel Focus is a bi-weekly newsletter produced by Natural Resources Canada, this site analyzes petroleum product prices, consumer and price trends and events influencing the Canadian market.

The Canadian Automobile Association is geared towards motorists concerned about pump prices.

The site provides answers to frequently asked questions on gas pricing along with gasoline conservation tips.

The Canadian Centre for Energy Information website contains details on gas pricing based on information from leading industry experts.

ShipMyRide can help you if you are moving across the country, or to a different province or city, we can ship your car. 


If you need you ship your car contact ShipMyRide for a free car shipping quote. Rest assured we will work to get your vehicle delivered home damage free.


Ship My Ride – Contact Information 

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