Eastern Canadians paying more for gasoline than westerners

Western gas tends to be North American, while the East imports from overseas


CALGARY – A study by Statistics Canada says gasoline prices in Central and Eastern Canada are rising more quickly than those in the West.

It says the trend since 2011 is due to a growing price gap between the types of oil refineries in both parts of the country use.

In the West, gasoline is based on the North American benchmark, West Texas Intermediate crude, which has been suppressed lately by a lack of pipeline capacity and growing domestic supplies.

Refineries in the East import a lot of their crude from overseas, which has been driven higher by conflicts in the Middle East and growing demand from China.

On Friday, there was about a US$24 price gap between West Texas Intermediate and Brent, the key international oil benchmark.

In Statistics Canada’s 2009 Consumer Price Index, gasoline made up 5.8 per cent of an average Canadian’s household budget. Oil accounts for about half of the price of gasoline, with local market dynamics and provincial taxes also affecting the final pump price.

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Eastern Canadians paying more for gasoline than westerners

  1. Well we could have been buying western oil for 40 years now, but the west didn’t want to sell it to the east. Instead they sell it at a discount to the US.

    • When the price of oil from Africa that the east uses was the same price as the west’s oil it really made no difference what oil the east used. No demand for a west to east pipeline. Now that because of the west’s oil glut, prices are cheaper from the west so now the east is interested in buying western oil.

      • The idea was for the east to buy western oil at a discount. The west refused, and sold it to the US at a discount instead. So Ont bought oil from elsewhere at the world price. Now that the west has a glut they want to sell to Ont.

        In the meantime, the west has lost 40 years of revenue.

        There is already an east/west pipeline.

  2. The West has always wanted the best market price for their oil. The Americans have recently increased their domestic supply and the BC Socialists won’t allow significant Pacific export. Now we have a prairie oil glut depressing prices. Currently you Easterners get your oil from North Africa (Tunisia/Libya) at a premium. Eastern Canada needs to take advantage of the situation to decrease the fuel costs for consumers with hopefully minimum government interference.