Gasoline or Gas prices in Canada are influenced by many factors, which in turn leads to great variations across provinces and cities.
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What is Influencing Gas Prices in Canada?
First of all, the price of crude oil, which is the primary determinant of gasoline prices. These prices are set on the international markets for oil and depend on fluctuations in global supply and demand, geopolitical events, and production decisions by major oil-producing nations, like the OPEC.
Then we have Taxes, both federal and provincial governments levy taxes on gasoline. For example, the federal excise tax is 10 cents per litre, while the provincial taxes range from 0 cents per litre in Manitoba to 19.2 cents per litre in Quebec.
In addition, refining and distribution costs will add to the final price of gas that Canadians pay at the gas stations.
For example: According to National Resources Canada, on 7-Mar-2025, the average price of regular gasoline in Toronto was 150.3 cents per liter or 1.503 Canadian Dollars per litre, with taxes comprising 53.9 cents per litre and marketing margin only 10.8 cents per litre.
Thus, only taxes represent more than 35% of the price of gasoline at the pump.
Source: Natural Resources Canada
According to GasBuddy, the cheapest prices for gas in Canada can be found in Alberta and Ontario, while in British Columbia, Newfoundland and Northern Territories you’ll pay the highest price, an increase of 20%. One of the reasons for this difference is the additional local taxes and the distance from major refining centers.
Source: GasBuddy.com
One way to save money at the gas pump is to buy gasoline from retailers like Costco Canada who has gas stations at their warehouses, selling the Kirkland Signature™ Gasoline cheaper than at other gas stations on average 5 to 10 cents cheaper than the other stations. Plus, you get 3% cash back when you fill up at Costco Gas Stations and pay with the CIBC Costco Mastercard Credit Card or get only 2% back at other gas stations and electric vehicle charging stations.