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Understanding Gasoline Prices: An examination of recent gasoline price increases

This article takes a look at the numerous factors that influence gasoline prices in Canada, including crude oil costs, industry wholesale and retail margins, and taxes.

Gasoline prices are examined in a global context, noting that because Canada produces only about 3% of the world's supply of crude oil, Canadian companies have almost no influence on international oil prices. On the domestic front, the impact of big box retailers entering into the retail gasoline market is examined.

The article concludes with a discussion of how key factors such as crude oil prices and exchange rates have shaped gasoline prices in recent years, and suggests that in the long term, the impact of price increases will ultimately be reflected in consumer driving habits and vehicle purchase decisions.

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