Info on how fuel prices are set in Canada

[free_radical]

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. And the Canadian dollar has been the worst performing major currency against the U.S. this year — which may actually mean more money for Canadian oil companies when they convert those U.S. dollars back into loonies, but it's definitely not good news for gas buyers at the pumps

Prices in Canada aren't established in Canada; they're made in the U.S.," says Roger McKnight, chief petroleum analyst with En-Pro. "So whatever happens to the wholesale price in the U.S. automatically hiccups into Canada."
😛

https://retail.petro-canada.ca/en/fuelsavings/gas-price-faqs.aspx


https://www.shell.ca/en_ca/motorists/understanding-fuel-pricing.html

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02926.html

[shum02]

wilber1 wrote:
This has had a big impact on our prices. Up 5 to 8 cents a litre basically overnight. Anyone else?

Syncrude transformer blast shuts down production.

Not in Ontario GTA as of yet. Paying $1.24/L for diesel, 1.30/L for reg gasoline.

[wilber1]

This has had a big impact on our prices. Up 5 to 8 cents a litre basically overnight. Anyone else?

Syncrude transformer blast shuts down production.

[wilber1]

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.

[valhalla360]

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.

[Little_Kopit]

Lessmore wrote:
I have no confidence in CBC news,

The CBC is one of the best for checking facts before they go to air.

On gas prices, Atlantic Canada (NL, NB, NS, &PEI) all have regulated fuel prices. Look up utilities board, or some such for each one via google. Although I can post them all. Gas Buddy will not give you as much information as those provincial sites. & they will also explain what sources they look at before making the weekly or bi-weekly price change.

:C

[wilber1]

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.

[valhalla360]

Nothing nefarious. The USA doesn't set oil prices. If there is anyone who set oil prices it's OPEC (though they have lost a lot of their power to do so in recent years). They openly admit that they are manipulating output to control prices.

The underlying price (minus taxes and transport) is the same regardless of where you buy it. Oil doesn't know where it's being pumped.

Yes, currency shifts will affect the number you see at the pump but it will have a similar effect if you buy a BMW from Germany or a Japanese computer. The current exchange rate will factor into the price.

[romore]

Another problem is taxes. Metro Vancouver has a $0.17/liter surcharge (to subsidize public transit) giving them the highest prices in North America

[Lessmore]

I have no confidence in CBC news,