Research publications

To be profitable, energy resources must be transported economically under favourable market conditions. Factors like the war in Ukraine, general political tensions in Eastern Europe and recent shifts in the trade dynamics of Canada’s oil sector all shed light on the critical link between transportation infrastructure and market access. A substantial portion of Canada’s oil reserves are located inland and most of Canada’s oil pipeline network connects Canadian producers to refiners and consumers in the United States. Canada’s pipeline network supplies a largely landlocked market in which the dynamics differ from those in the international, waterborne market.

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.