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Canada: Gas averaging more than $1.20 ($5/gal) a litre across Canada

Updated Fri. Apr. 18 2008 6:40 PM ET
CTV.ca News Staff

Gas prices have jumped again, surpassing the $1.20 a litre mark in most major cities across Canada.

According to Gasbuddy.com, prices in Quebec City are hovering around $129.5 a litre. In Victoria, prices are about $1.24 a litre.

In southern Ontario, in cities like Toronto and Hamilton, prices at the pump are averaging about $1.20 a litre.

Prices are even higher in northern Ontario cities.

Gas stations in the Halifax area are showing prices in the $1.28 a litre range while some stations in Winnipeg and Vancouver have prices of about $1.26 a litre, reports The Canadian Press.

Gas prices are above the $1.20 mark in Calgary, Regina, P.E.I. and Winnipeg.

Edmonton, in comparison to other major Canadian cities, appears to have the lowest price, $118.9 cents a litre.

Dave Collins, the owner of an independent filling station in Halifax told CTV Atlantic "it's going to be a miserable summer for everybody."

"It's really simple because we have the second highest tax regime. Only Newfoundland has higher taxes than we do. Nova Scotia is a very high road tax environment."

Diana Whalen, a Liberal MLA in Nova Scotia, agreed provincial taxes have a lot to do with the high prices in her province.

"Our party has been calling for a 4 per cent cut to the fuel tax which is the tax on every litre of gasoline. We've been saying that for quite a few months now and the prices at this point in time are showing we're really not competitive with the other provinces."

The high prices have people across Canada grimacing at the pumps.

"People are frustrated by the high gas prices and bracing for $1.40 to $1.50 per litre this summer across the country," Jason Toews, co-founder of Gasbuddy.com, told CTV Newsnet on Friday. "It's going to be a tough summer."

Liberal MP Dan McTeague is accusing refiners of taking advantage of consumers and said market fundamentals do not support the rising prices.

He told CTV's Mike Duffy Live that refineries, the oil industry and the four major oil companies in Eastern Canada are taking advantage of consumers.

He said the only solution is to build more oil refineries, and for the federal government to toughen the Competition Act to ensure prices are fair. Though he said the feds don't have the authority to regulate gas prices.

McTeague said he expects much of the next week explaining to his constituents why prices are so high.

"A lot of people are at the breaking point and I suspect it's going to be very hard for a lot of us to explain exactly how we got here, but there's no doubt this is going to cause enormous pain for just about everybody."

New Democrat finance critic Judy Wasylycia-Leis, agreed it will be a prime topic for discussion while Parliament takes a break next week.

"I think they're going to be pretty upset their price of gas keeps going up at the same time the government is giving another $1.5 billion in subsidies to the oil sands, to the big gas companies, the big developers, and yet nothing is being done to protect consumers," she told Mike Duffy Live.

But Conservative MP Rick Dykstra said the government has taken big steps -- lowering the GST by two per cent, putting money towards renewable energies and alternative fuels, helping out the provinces and offering tax credits for bus passes.

"We think we're trying to balance the needs of individuals and the economy with ensuring we're working towards fighting greenhouse gas emissions and lowering them and being responsible with our country's dollars," Dykstra said.

Edward Jones analyst Lanny Pendill said Thursday that pump prices have not even come close to catching up with refiners' soaring costs.

"The net impact has been the profitability at the refineries has declined significantly from last year's levels,'' he said.

"The refiner, in essence, is absorbing some of that cost increase of oil.''

BNN's Linda Sims reported an ease in crude oil prices Friday. Still, she said prices remained above US$114 a barrel.


Comments are now closed for this story

Steve in Fredericton
NO KIDDING MARKET FUNDAMENTALS DON'T SUPPORT THE RISING PRICES! We've (the general public) have been saying that for years.

Why is it that the largest un-tapped oil reserve in the world is Saudi Arabia (they're all driving Mercedes and living like kings) and the world's second largest is Canada (we're paying $1.20 per litre and boardering on mass poverty)!?

Time we started refining our own oil to cheaply supply the Canadian market.


brenda
When we ALL stop driving to work...lets see how fast the price of oil drops!


Shamaro
I'm really starting to like the idea of going back to the old horse and buggy way of transportation. At least that will take away alot of road rage and no line up at the gas pumps.


AV
Government needs to step in and control fuel prices. This is nothing more then gauging the consumer whenever possible. This is a Federal issue that must be addressed. This will severlely effect the way people do business and in the current state of our economy this can prove to be devistating.



MB
It's to the point where I can't afford to go to work. Gas is eating into the grocery bill. May have to find another job or find alternative arrangements. It's not like public transit in the GTA is great either. Will be even worse with the TTC strike on the way.


TimI
Get ready for higher prices... scarcity of oil resources in the wake of rising demand from China and India will keep pressuring world energy resources. Only economic means (high prices) will finally cause us to become the environmentalists in practice that Canadians all seem to be in theory (we need to be following Kyoto, but no one wants to stop driving). And forget nationalizing our oil resources. Not only is that patently unfair, but Alberta will never suffer through another NEP. Of any Canadian province, it is the one most economically capable of separating. The U.S. would welcome it with open arms too.


Lynn
Let's stop buying from the big oil companies, such as ESSO, Petro-Canada and Shell, who set these prices. When they see we're not buying, maybe they'll drop their prices!


Kate
When it takes over $60 to fill my gas tank and I only drive a Pontiac Sunfire...that is where I draw the line. This is ridiculous! People could not afford the prices before, how do we afford them now. I see a big problem brewing. Funny, as one major market slows down, ie housing, another is there to pick-up its upward trending slack. Good job Canada.


John Spartan
It's time to nationalize oil and kick Big Oil out of Canada. They had record profits last year and will break that record this year.


Disgusted driver in Halifax, NS
Disgusted. That is the only word I can think of to sum up my feelings when I saw the price at the pumps this morning on my way to work.

Rick
I will be interested to see how many billions in profit the oil companies make, and then say they are not ripping Canadians off.


Richard W in Kitchener
I am moving down the street from my office. I will no longer be held hostage by big oil and Saudi kings.


David
Steve, Canada's oil in Alberta is not the same type as in Soudi arabia. we have to spend way more money to get it out of the sands and tons of fresh water.

This is why its not cheap, Plus the Americans are forking over money for that oil.


poor soldier,
Government needs to step in, this is getting out of hand, there driving people in the poor house..with gas and oil prices, and the food priced going up, it makes me think it be better to go on welfare, then work just to pay these bill...at least i get more time to spend with the kids


Dawn FA
Well it is the old supply and demand game, we are willing to pay the price for gas no matter how ridiculous it gets and the extortionists..oops..gas companies will keep raising the prices.
Face it telling people not to drive won't work, too many people rely on their vehicles too much, our cities could not handle the influx of the sudden surge in commuters on the bus or transit lines, and who can afford to take a cab it most major cities?
Until the people we elected to look after our best interests put down their foot and say no more the gas companies will keep squeezing every cent out of our pockets!


Shamaro
AV...There is nothing, absolutely nothing the Federal Government here Canada can do about the price of a barrel of oil. This has to do with Global Markets and speculators driving up the price of crude oil and energy starving countries like China and India are certainly helping to drive up the price as well. The only way we would be able to control the price of oil and gas, is if we stop importing and exporting our oil, cut off the rest of the world from Canada and set the prices here by becoming an energy self sufficient country. However, that is easier said then done. If you want price controls, then may I suggest forming a communist party and turning Canada into a Communist nation.


Rob in Winnipeg
It's time we look back in time and realize that the Liberal Party of the day (thanks Pierre Elliott Trudeau) granted all the oil companies the right to sell Alberta oil at world prices instead of the price set by the Federal Government.

That one stupid mistake is now causing us as a major oil producing country to pay the same as those who have to import their oil.

Here's a point to ponder for today - Just maybe Venezuela President Hugo Chavez got it 100% right when he nationalized all his countries oil fields and kicked out all the oil companies.

Maybe it's time our government kicked out all the oil companies and nationalize all our oil fields and refineries?





Michele
Good point Steve!

Maybe we should take Venezuela's lead and charge a 50 precent royality fee when the price exceeds a certain amount.

Alberta only gets 2 a barrel now, regardless of the price.

We are one of the few western countries who allow foreign companies access to our energy resources.

Maybe its time to nationalize our oil industry and give Alberta a larger piece of the pie instead of the majority of the profits leaving the country/province.

Have all processing done in Canada benefiting Canadians via good paying jobs then sell it to the states.


MKZ
...net impact is the profitability at the refineries is decreasing from last years levels....booo hooo... still absolutely massive profits / pay checks for the oil companies / executives. My heart bleeds for them.


Eur
Prices are rising all over the world. Many countries in the world and nearly every country in Europe would gladly pay $1.20.

Comparing Canada to Saudi Arabia is laughable.

The vehicle fuel consumption and sizes are ridiculous here. Most countries on the world, America obviously excluded, learned 20 years ago that smaller vehicles consume less.


Frank Buchan
For years I've wondered how the price of a litre changes before the holding tanks are empty and refilled. You would think if this was supply and demand, cost-driven, etc., that the price would rise only when the gas station tank itself ran dry of gas, and was refilled by more expensive fuel. That oddity alone is a clue to how seriously false the price-fixing is.


gord
I find it funny how so many people complain about the rising cost of gas, yet they are more than willing to let their vehicle idle while waiting to be served at the Tim Horton's drive thru to buy their daily medium coffee (250 ml) at $1.50 (which works out to about $6.00 a litre!!).

Why don't I ever hear public outcry about the rising cost of coffee at Timmies?

It seems in this country, it is popular to complain about gas prices. Why not cut back on fuel consumption??? $1.20 per litre gas is here to stay!!


Dean
The gov't is not likely to step in and control prices. The higher the prices go, the more tax they get to squander. Did I mention that it is a tax on a tax? I'm not sure that it is legal to do that but it happens anyway. The oil companies know we won't or can't get out of our cars so they can pretty much do what they want and we will suck it up.


James
Boohoo...I can't count the amount of people I see sitting idle in drive thrus at Tim Hortons or driving to the corner store.
I have no sympathy. For all I care prices can rise higher...Then again I don't drive!


Jeff
with oil, it's kind of a no win situation. American dollar is low, so people put money in commodities (ie Oil) and drive the price up. Once the American economy revives and starts going strong again and the dollar rises, guess what? The demand for oil will go up and again the price of oil goes up...it's all a vicious circle with the consumers getting the short end of the stick.


Mike M
If most of us in North America would opt for more economical cars and SUVs, the demand for gasoline would drop and the prices would go down too. But as long as people keep buying gas guzzlers, the gas prices will keep climbing.


Brian.
Perhaps we should hold some sort of info. seminar, and let these major oil companies explain to us where these prices are coming from. From my undersrtanding, it basically boils down to:
1. Crude Oil costs
2. Refinery Costs
3. Taxes

With the crude oil price of $113.32 USD per barrel, and the Canadian dollar hovering at par (1 USD =1.01 CAN), we should be paying $1.17 per litre at the pump. Right now across the street the price sits at $1.20. What is an extra 3 cents per litre? About $3.3 million dollars PER DAY in pure profit to the major oil companies. In case your wondering, $1.17 per litre already includes a normal profit margin for the oil companies already. I have no problem paying a fair price if market conditions call for them, but lets call a spade a spade here.


James
Let’s do something, it all starts with the media, you guys have the power. We need more stories about outrageous profits at the big oil companies, more stories about how high oils prices are going to cause everything else to go up in price. We need to get agree about this and do something and it all starts with the media.


Al
I have to agree with Brenda on this one. Governments won't do anything because they are raking in a fortune in tax money, but if everyone refused to go to work for a few days or even a week and it wouldn't be long before the governments would have to do something about it. Problem is, no one seems willing to do it. Too bad all the provinces work forces couldn't get together and force the hand of government. Where are the unions? Just maybe they are getting fat off this situation also.


Deepak
What is preventing Canada to put more refineries is what I cannot understand.
Looks like Canada is not in favour of putting more refineries in Canada for fearing of losing revenue which the petrol prices are generating.


Doug
Our transportation system was not designed by the average joe. Many of us have to drive our car to get to work or wherever. There is no other alternative available. Now, while oil companies and speculators continue to make record profits, we are told it is us that must change our ways. How many billions in profit are enough? What are my alternatives? If I don't drive to work, I have no work. I can't charge my employer more each week to cover my costs. I repeat what are my alternatives?


mac
The most important oil-producing region of the world has been radically destabilized by US war criminal imperialism.

Every bomb dropped by US war criminal regime drives the price of oil higher.

Until you denounce the US wars of aggression, don't whine about the price of gas.



Jeff Johnston
Gas is so expensive in Canada because of TAXES you want socialism you have to pay for it! suck it up may! people in Toronto will finally park their SUVs after all they're the one whining about the ENVIRONMENT!

Government controlled gas prices ..no way! The Liberals can make lies about it all day and night.


Devon K.
I pay about $25 a week for gas and I commute to work.

My answer: carpool.

If you aren't carpooling today you're crazy.


Dave
When I fill up and look at the massive chunk taken in taxes, I wonder why there has not yet been an outcry from the public, as this will soon undermine our economy's stability. At the rate of increase we have been seeing lately, the only way to help the average person will be to cut what the government takes. The government has no hand in the production or distribution of petroleum products, yet steps in and takes over 30% of what we pay at the pumps. We need to get started with our MPs on tax reduction at the pumps.


Andrew
Okay, this is something I really don't understand. When gas prices rise it is front page news, and all the newsmedia and political parties "demand action" to bring prices down.

The next day some enviro group is going to say we should place carbon taxes on fossil fuels to curb "green house" gas emissions. With this all the opposition parties "demand action" saying that Canadians want a carbon tax, and it's our responsibility to pay more in the name of the environment.


Dave in Toronto
Mr Harper had a good idea in 2004 when Paul Martin was PM . Take the GST off Gas for the Summer until Gas prices come down to Normal . I wonder if Steve will take his own advise this summer 2008 ?
I bet the Truck drivers will Block the 401 again to make the Goverments lower Gas Taxes .


Joe/ Calgary
This is a is a positive trend for the environment. Finally a raise in gas prices that will actually influence the majority of Canadians when they're on the car sales lot.


Layton in Moncton
I hate to say it, but it's time to encourage the organic family farm again. We cannot afford big agribusiness any more. Its time to put major taxes on frivolous truck and SUV owners, those who do not require these vehicles for employment. We've Peaked, and Big Oil knows it, and the refiners know it. So we can either accept it and our leaders can admit it, then like adults we can make the right decisions together, or we can bury our heads in the sand and one day wake up to world wide anarchy that would make the sacking of Rome look like two old men squabbling over a game of checkers! While this seems dire and gloomy, it sadly is the truth. With major airlines merging, fuel prices off the rails from the market indicators, and food prices on the march from corn diverted to ethanol, we are in for some major trouble. Trouble that needs to be transparently addressed, because the fact of the matter is that if most mainstream figures are correct, by 2040 worldwide oil output will be roughly equal to what the US used in 2003. Thats called scarcity, it will be gradual and I'm afraid this is indeed what we're seeing. Don't believe me, Google Peak Oil.


Clayton
The affect of driving with these prices is one thing but what about the prices of manufactured goods and food? The cost of fuel is going to have a big impact on these prices... time to dig up the lawn and plant a veggie garden so we can eat this winter.


pp
It's simple: supply and demand; finite resources and infinite gluttony. Stop complaining.


David
I luv the high price of oil that what the USA gets for creating a crisis in the middle east they are making Russia and Iran very rich and strong and the USA weak. Cant' wait for $150 a barrel. I live in Ottawa and cheer when the price at the pump goes up.


Glenn
What I want to know is why the prices of fuel are always higher in the Okanagan Valley compared to the rest of BC? Hey all you tourist come to BC and experience some of the highest gas prices in the country.


mred
Venezuela produces as much oil as does Kanada.

If our government would stop selling our resources to the Yanks and China we could all be driving Mercedes and paying .07 cents a liter for gasoline like they do in Venezuela.

We are being taken to the cleaners, BIGTIME.

The CONS fiddle while Rome burns


Devon K.
I made one comment when the story was first posted about carpooling. Then I saw the multitude of comments that show, once again, that Canadians can be woefully ignorant.

1. Big Oil doesn't set the price of oil or gasoline. They sell oil on the commodity exchange where traders bid for it on an open contract basis. The highest bid wins the contract. Everyone is buying oil today because its a better investment than the stock market or the US dollar.

2. Yes Big Oil makes a profit because traders bid the value of that commodity up. That's the nature of the market place. Tough for us.

3. I have zero sympathy for my fellow Canadians in this pickle because every morning as I commute to work in my carpool I see 19 out of 20 cars and trucks with only one driver. If you want to lower your fuel costs - carpool, pool as many little trips into one big trip for errands, trade in for a more fuel efficient vehicle. The bulk of vehicles out there are still big SUV types. Again, I have zero sympathy for my fellow Canadians in this regard.


Joe/ Calgary
Canadians complain about fuel prices but less than one-half of one percent bought the most fuel efficient vehicle on the market. We claim 'to need' a larger vehicle because of ...blah...blah. Well, rising prices will encurage us to stop creating situations where we 'need' these vehicles.
The higher the price, the better for the environmnet as it actually impacts the choices we make in life.


Paul in BC
Interesting how our Federal Government is "Mum" on the outrageous rise in the cost of fuel and its effect on the daily lives of all of us.

I also wonder if the wars in the Middle East cause a supply issue with gasoline. All the military equipment, jets, frigates, tanks, heavy vehicles, transporting troops and goods across the world all use up an incredible amount of fuel, and what about the effect on the environment.

War, what is it good for???


Sean
It is definitely time to remove oil and gas as a trading commodity on the stock market. Speculators are getting richer and richer on the backs of hardworking Canadians who need gasoline to live in a modern world. I know people will harp on about public transportation, but sorry folks, most of us don't live in Toronto or Ottawa where public transportation is adequate. I think it's time to declare gasoline and heating fuel as an essential service/commodity, regulate the price to an affordable level. Remove it from the stock market and only use Canadian oil and gas in Canada. Stop exporting this non renewable Canadian legacy owned by all Canadians, not only the provinces who have it in their soil.


Mike
People lighten up. This is a fact of life. I mean look how many million of barrels of oil are used a day just by the U.S alone. Think about the entire world now. The world is only so big and only has so much. As more people get educated they will earn more income and purchase cars etc, the more oil will be needed. Yes the high prices hurt but technically it should be alot higher.


Tim
I have made the commitment to sell my car and buy an electric scooter. Enough is enough.


Chris C.
And so we are doing nothing about it, we are letting these thieves defraud us by the hour under the most pretentious of lies and all that's done is reporting the so-called fear-factor of increased prices thereby opening the doors to the oil companies to do exactly that and bring up the prices. This fraud on a national level and we're getting stuck with bill and who cares?!?!!


pp
OK you guys and Brenda who wants everyone to 'stop driving' and then see how long the prices stay up --- It will stay up trust me...

Fuel for driving is a small fraction of what petroleum products are used for.

So Stop making PC's, TV's and fabrics that are synthetic, Stop heating homes and business, stop making fertilizers, meds, etc, stop driving tractors to plant and harvest food, Stop shipping stuff on trucks, trains, planes, boats, etc etc etc...

Just saying stop driving is not the problem. The problem is that we rely upon petroleum so much for everything in our lives that we would be hard pressed to stop using it now.

What we need are really cleaver entrepreneurial chemists and engeneers that will develop new methods of creating all those products we now use....




GP
This is such a load of crap. The same bandits that drove the Credit Crisis are now pushed into the commodities market. Oil is a required resource, and should not be an investment tool for Equity funds to manipulate at the expense of the public.

Come on people, its time to put the brakes on this free market experiment of the last 20 - 30 years...its not working any more, its all about greed now.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080418/gas_prices_080418/20080418?hub=CTVNewsAt11