Gasoline pricing
Drivers have many concerns about
gasoline pricing, particularly lately. High world prices for crude oil,
strong demand for gasoline and tight supply in North America have lead to
record high retail prices across Canada. In this environment, pump prices
move up and down considerably and this volatility can be very frustrating.
Here are several points to consider:
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Current prices are due to stronger than ever demand for gasoline and high
crude oil prices resulting from Middle East instability and demand from
developing countries such as China.
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Canadian commodity taxes have historically averaged 30 per cent or more of the
total price of gasoline.
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Canadian gasoline prices, on average, are lower than those in the U.S. and
among the lowest in the industrialized world, excluding taxes.
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Over 20 separate Canadian government inquiries have all concluded that the
industry is competitive.
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Gasoline prices today are about the same as they were 20 years ago, excluding
inflation and taxes.
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As drivers, we are very price sensitive and will go out of our way for 0.2
cent per litre price difference. This results in strong competition at the
local level, which can cause price swings of as much as 10 cents per litre.
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While extreme volatility is frustrating, it is also a key indicator of a
competitive market at work.
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The current pricing situation is not unique to Canada - prices have been
rising around the world.
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Put in perspective, the price of a litre of gasoline is still less than a
litre of milk (e.g. $1.49/litre) or bottled water (e.g. $1.50/litre)
Please visit the rest of this section for more information on gasoline pricing.
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