If you’re like most people, when you think of the oil and gas industry, you think of gasoline. And more often than not, a conversation about gasoline is about the price, so that’s what we’ve covered here.
Gasoline is known as “gas” but it’s actually made from oil. So when you buy a litre of gasoline, some of the cost pays for the crude oil that went into the gasoline. You also have to pay the costs of refining the oil, distributing the gasoline (via pipelines and trucks) and selling it at gas stations. Think that’s it? Nope! You also have to pay the taxes, which average more than 30% of the total cost.
Learn more:
- Canadian Fuels Association: info and a cool graphic on gasoline pricing.
- Natural Resources Canada: average retail prices for gasoline in dozens of locations across the country
- Check out where Canada fits in gasoline pricing compared to other countries. If you’re wondering why gasoline is so cheap in countries like Iraq, Iran and Venezuela, it’s because their governments subsidize and control the costs of crude oil within the country. Other countries, like Canada, allow the global market to set oil prices based on worldwide supply and demand.