Petroleum pricing in Canada — the Q3 2025 report

Read the full Q3 report from Kalibrate Canada here.

Retail gasoline prices stay stable while diesel prices rise

Canada’s retail gasoline prices remained largely unchanged in the third quarter of 2025, averaging just 1.1 cents per litre higher than Q2. Meanwhile, diesel refining margins expanded sharply, pushing retail diesel prices to their highest level in nearly two years.

This quarter’s trends were shaped by moderately declining crude oil prices, strong refining margins, and ongoing geopolitical instability affecting petroleum supply chains.

Gasoline margins expand as inventories tighten

Despite steady refinery activity, refiners prioritized diesel over gasoline, resulting in shrinking gasoline inventories during peak summer demand.

• Gasoline refining margins reached a four-month high in September.

• Margins averaged 6.5 cents per litre above the five-year seasonal norm.

• Retail gasoline prices hit 147.1 cents per litre by the end of the quarter — the highest since carbon taxes were removed in April 2025

Diesel prices rise due to low inventories and global competition

• Refining margins soared to their highest level in 22 months, 15.1 cents per litre above the five-year average.

• North American distillate inventories fell to their lowest July levels in two decades.

• European demand — diverted from Russian petroleum — further tightened global supply.

Canadian retail diesel prices increased by 5.6 cents per litre compared to Q2. While inventories recovered somewhat by September, prices remained elevated heading into the fall harvest and winter heating seasons.

Regional fuel price trends: British Columbia tops the charts

Gasoline and diesel prices were highest in British Columbia, particularly in Vancouver, where retail gasoline averaged 23.4 cents per litre above the national average. Key contributing factors included higher provincial and municipal fuel taxes and Low Carbon Fuel Standard (LCFS) compliance costs.

Diesel prices in Vancouver averaged 27.2 cents per litre higher than the rest of Canada, amplified by reduced biodiesel use after U.S. tax credit changes.

Download the full report

For more detailed data, charts, and forecasts, download the full Q3 2025 Petroleum Pricing Report from Kalibrate:
Download the full PDF here