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Fact Sheets - Petroleum Products and Crude Oil Prices

Why Canada Doesn’t Regulate Oil and Fuel Prices – After a brief period of regulation, Canada today is committed to a market-based approach to determine prices for crude oil and fuels such as gasoline. While some provinces have opted to regulate gasoline and other fuel prices, this approach has not resulted in lowered prices for consumers in these jurisdictions. Provincial price regulations are generally introduced to provide more stable prices.

Taxes on Fuels – A portion of the final price you pay at the pump for gasoline and other fuels goes to various levels of government in the form of taxes. Depending on where you live, you pay a federal, provincial and, in some cases, a municipal tax on these products.

Federal Laws and Gasoline Prices – Canada’s retail gasoline market is governed by the federal Competition Act and Emergencies Act.

Why Gasoline Prices Vary Across Canada – The price you pay for gasoline at your local service station can vary quite a bit from the price in the next city. Price differences between cities and across Canada involve four key factors: taxes, competition and consumer choices, the amount sold, and the type and location of stations.

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