Gasoline:
Retail gasoline prices decreased 6.2 cents per litre to 178.1 in October
Retail gasoline prices in Canada fell 6.2 cents per litre from the end of September to the end of October, ending the month at 178.1 cents per litre. This decline was driven mainly by softer demand, while the crude oil component of the pump price remained elevated in October. As we move further away from the busy summer driving season, gasoline demand declines, narrowing the gasoline refining margin, which fell 15.3 cents per litre over the month. Although crude oil flows have begun to increase from the Middle East, longer and more complex shipping routes for petroleum products from the region have driven substantial increases in shipping rates, keeping crude oil prices elevated. Compared to the end of September, the crude component of the pump price was up 9.2 cents per litre, erasing some of the effects of easing wholesale gasoline prices as the refining margin contracted over the month. Still, retail gasoline prices declined in October, also aided by the removal of petroleum taxes in some provinces (Alberta and Prince Edward Island, and soon to be followed in Newfoundland starting December). Federal gasoline excise taxes also remain on pause, helping ease pump prices.
In October, most surveyed markets in Canada saw retail gasoline prices decline, though there were exceptions. The largest price decrease occurred in Lethbridge, Alberta, where prices fell 23.2 cents per litre over the month to 153.3 cents per litre, the lowest in Canada at the end of October. In contrast, prices rose 6.5 cents per litre in Kamloops, British Columbia, the largest observed increase in Canada, ending the month at 195.1 cents per litre. At the end of October, Labrador City, Newfoundland, had the highest price at 209.3 cents per litre.
Diesel:
Retail diesel prices decreased 1.2 cents per litre to 259.5 in October
Retail diesel prices in Canada also fell in October, down a modest 1.2 cents per litre, ending the month at 259.5 cents per litre. After reaching an all-time high in September, prices eased slightly in October but remain exceptionally high. The diesel refining margin was up 62.6 cents per litre year over year, and the crude oil component was up 39.8 cents per litre year over year, pushing pump prices up 102.5 cents per litre year over year. Wars in the Middle East and between Russia and Ukraine have substantially limited global distillate production over the past year. Although North American refineries are adjusting product yields to favour distillates over gasoline, their ability to do so is constrained by their current configurations. Consequently, despite best efforts to raise supplies, North American distillate supplies ended October at multi-decade lows, keeping pressure on diesel margins. Increasing seasonal demand for diesel for agricultural and home heating also kept pressure on diesel refining margins in October, keeping pump prices elevated.
In October, retail diesel prices varied by region. Some markets saw prices increase, with the largest rise in Brandon, Manitoba, at 21.0 cents per litre, ending the month at 264.2 cents per litre. Elsewhere, prices declined, with the largest drop in Lethbridge, Alberta, at 16.5 cents per litre, ending the month at 233.4 cents per litre. Overall, at the end of October, the lowest retail diesel price was in Yellowknife, Northwest Territories, at 226.3 cents per litre, while the highest was in Val d’Or, Quebec, at 295.1 cents per litre.
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Kalibrate Canada conducts a daily survey of retail gasoline, diesel, propane, and furnace fuel prices in 77 Canadian cities.
Canadian petroleum prices are available for download and display using a variety of analytic tools on this website: Charting.kalibrate.com
