HillNote
Gasoline prices are highly volatile and vary across regions. While retail prices are visible to consumers, the factors that determine them are less apparent. Crude oil prices are the major driver of gasoline prices; however, other factors also influence the final price at the pump. The retail price of gasoline reflects the costs incurred throughout the supply chain and consists of four components: crude oil prices, refining margins, retail margins and taxes. This HillNote examines how they affect (unleaded) gasoline prices across Canada and over time.