You need to have a fuel budget not only for road trips but also for daily commutes. Gas prices in Canada vary across provinces due to many different factors. Each province has its own set of taxes on gasoline, which can vary significantly. Additionally, the presence of competition and consumer demand can influence gas prices in different regions. Understanding the factors that contribute to the disparity in gas prices across provinces is equally important for consumers and policymakers. In this article, we will explore the factors that affect gas prices in Canada by province.
Gasoline In Canada
Gasoline or Gas is a refined petroleum product. Just like our body needs food to function properly, cars cannot function without gas. Gas is commonly used as a fuel all over the world. Gasoline comes from crude oil.
It is produced domestically in the Western Canadian Sedimentary Basin (WCSB) in Alberta, Canada. There are 14 refineries that produce gasoline in Canada. Six of them are in western Canada, four in Ontario, two in the Atlantic Provinces, and two in Quebec.
No doubt, Gasoline is an essential component of Canada’s transportation sector. In Canada, the average consumption of gas is approximately 688.72 thousand barrels per day. This demand is met through a combination of domestic production and imports. Canada is the fifth largest producer of oil and produces 5% of the global production.
Over 96% of oil production in Canada happens in Alberta, Saskatchewan, and Newfoundland and Labrador. The main sources of oil production in Canada are:
- Western Canada Sedimentary Basin (WCSB)
- The Oil Sands of Alberta
- Atlantic Offshore Fields
Factors Affecting Gas Prices in Canada
Gasoline prices in Canada keep varying all the time. However, the gas prices in Canada are quite affordable compared to other countries. Gas prices in Canada vary from province to province. The retail prices of gas in Canada also vary depending on the size of the city or town. Generally, gas prices are relatively lower in big cities. This is because of the availability of a wide range of gas stations.
Gas prices can fluctuate due to various factors such as:
- Global oil prices
- Taxes
- Season
- Weather
- Type of gas
- Type of station
- Competition
- Selling price of the station
- Location of the station
- Supply and demand
- Refining capacity
- Regional factors
- The exchange rate of the U.S. dollar
Some vehicles use more gas than others. You must get a car that has both, comfort and less consumption. You can save a lot of fuel costs.
Average Gas Prices In Canada By Province
Gasoline in Canada is quite reasonably priced compared to many other countries. Gas prices in Canada are quoted in cents per litre. Here are the average gas prices in Canada by province:
| Province | Average Gas Prices ( CAD Cents per litre) |
| British Columbia | 193.0 |
| Newfoundland and Labrador | 185.3 |
| New Brunswick | 179.2 |
| Nova Scotia | 174.9 |
| Prince Edward Island | 173.9 |
| Quebec | 170.8 |
| Northwest Territories | 165.9 |
| Manitoba | 159.1 |
| Saskatchewan | 156.4 |
| Ontario | 155.1 |
| Alberta | 141.4 |
Currently, British Columbia has the highest rate of gas per litre, followed by Quebec, and Ontario. Alberta currently has the lowest gas price per litre in Canada. These prices fluctuate regularly. So, these might not reflect the current prices when you’re reading this article.
Gas Stations In Canada
There are hundreds of gas stations in Canada where you can get gas. Some of them are given in the table below:
| Canadian Tire Petroleum | Chevron Corporation | Fifth Wheel Truck Shops |
| Domo gasoline | Esso | Mobil |
| Harnois | FJ Management | Gulf Canada |
| Coop Avantis | Mohawk Oil | Petro-Canada |
| Nun’s Island Gas Station | Imperial Oil | Super Save Gas Station |
| Parkland Fuel | OLCO Petroleum Group | Crevier |
| Eko | Husky Energy | Suncor Energy |
| Joy Gas Stations | Paz Fuels | Pioneer Energy |
| Shell Canada | Irving Oil | Wilson Fuel |
| Sergaz | Supertest Petroleum | Ultramar |
Parkland Fuel is the largest gas station in Canada.
Alternatives To Gas In Canada
Following are some other alternatives to gas that are available in Canada:
- Natural gas
- Biodiesel
- Ethanol
- Electricity
- Hydrogen
- Fuel Cells
How Is Gasoline Priced In Canada?
Gas price in Canada is set by four factors. These factors include:
- Crude oil prices
- Wholesale prices
- Retail mark-up
- Taxes
What Are Regulated Markets In Canada?
In Canada, some provinces regulate the price of gas to prevent below-cost selling. They do this to ensure retail price stability and protect their dealer margins. This is called a regulated market.
The following provinces have some form of price regulation in Canada:
- Prince Edward Island
- Newfoundland and Labrador
- Nova Scotia
- New Brunswick
- Quebec
However, an open unregulated marketplace is considered the best way to ensure competitive pricing. Regulated price stability usually results in higher prices at the gas stations.
What Are The Ways To Save Money On Gas?
Here are some useful tips to save money on gas:
- Use public transportation
- Drive less
- Combine errands
- Carpool
- Buy a fuel-efficient car
- Shop around for the best gas prices
Final Thoughts
So these were the gas prices in Canada by province and the factors affecting them. You can save a lot of money by making a fuel budget. However, these gas prices change every day. The above-mentioned gas prices are average prices. You may see some difference when you go to the gas station for a re-fuel. Moreover, you should use vehicles that are fuel-efficient.
Keep Reading: Cost of Buying Food in Canada By Province
Michael C Vang is a passionate blogger. He has been blogging since 2013 on a variety of topics. He is committed to creating informative and engaging content that helps readers learn more about everything.
