Info on how fuel prices are set in Canada
No hating just the facts.. For people complaining about high fuel prices in Canada this explains all From CBC news No matter where they originate, oil products are priced in U.S. dollars. An...
Forum Discussion
valhalla360 wrote:wilber1 wrote:
No one is saying the US sets prices, the point was made that oil is priced in US dollars. This has an impact on fuel prices in Canada. Also, where I live, there is only one refinery and a large portion of our fuel comes from refineries in Alberta and Washington State.
The underlying price is not the same, it varies with the source and type of oil.
World Oil Price Chart.
Currency exchange rates impact pretty much every imported product as the home country buys the pieces and parts and pays the staff in local currency and then they have to run a conversion to determine the price in Canada. So if there is no nefarious issue that is being claimed, this is a basically the same as saying "water is wet".
The price to get it out of the ground varies but once converted to a standard gallon of gas, it's the underlying price plus tax and shipping regardless of the source.
If there is anything nefarious, it is the industry's ability to avoid the over capacity that plagues some other industries like agriculture. They have matched refinery capacity to demand very well and whenever a single refinery goes down for maintenance or anything else, we see it at the pump.
