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Petroleum Product Market Outlook

The Canadian petroleum industry has taken the necessary steps to ensure that adequate supplies of gasoline and diesel fuel will be available to consumers this fall. Refineries across North America that were not impacted by the extensive damage to U.S. oil infrastructure caused by Hurricane Katrina are operating at full capacity to meet consumer demand.

Petroleum product prices in Canada have reached record highs due to persistently high world crude oil prices and strong demand growth. If demand for gasoline and diesel fuel continues to rise despite higher prices, petroleum product supplies in Canada will remain tight and prices will remain significantly higher than year ago levels.

What does this mean for Canadian consumers? Car ownership and home heating have obviously become more expensive and this trend may continue. These increases could have a significant impact on the driving habits of Canadians, especially households with more than one automobile.

Fortunately, Canada produces more of these products than it consumes, and we have an efficient commercial storage and supply system. At this time, there is no reason to expect that any Canadian region will have inadequate supplies to meet consumers' needs. Nonetheless, NRCan continues to closely monitor market conditions.

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