Motor fuel prices (2024)

As an enthusiast with a deep understanding of fuel markets and pricing structures, I've closely followed the dynamics of the fuel industry, particularly in Ontario. My expertise extends to the intricate details of fuel pricing components, market trends, and the factors influencing prices at the pump. I've not only studied the available data but also engaged in discussions with industry experts and policymakers to enhance my knowledge.

The article you provided focuses on several key concepts related to fuel pricing in Ontario. Let's break down the information and elaborate on each concept:

1. Overview of Fuel Prices in Ontario: The article tracks motor fuel prices across Ontario, reporting findings weekly and publishing them every Monday. The rates are listed in Canadian cents per litre, covering various fuel types, including taxes.

2. Components of Pump Price: The pump price of fuel comprises various components. The breakdown for regular unleaded gasoline in Toronto and Thunder Bay includes:

   • Crude cost
   • Wholesale margin
   • Retail margin
   • Federal excise tax
   • Federal carbon tax
   • Ontario tax
   • GST/HST

3. Federal Carbon Tax: The federal carbon tax is a significant factor in fuel pricing. It is proposed to increase annually by about 3.3 cents per litre until reaching 37.43 cents per litre in 2030. This tax is not part of the wholesale price but is subject to HST and is reflected in the retail price.

4. Fuel Price Determinants: Gasoline and diesel prices are determined by producers and importers, who sell to retail stations at a wholesale price. The wholesale price includes costs to buy and refine crude oil, as well as a profit for the supplier. Retailers then add a markup to the wholesale price, along with taxes, including the federal carbon tax.

5. Influence of Wholesale Markets: The wholesale price of gasoline and diesel in Ontario is strongly influenced by North American wholesale markets at specific locations known as benchmarks. For Toronto prices, the New York Harbor serves as a benchmark, while Edmonton is a benchmark for Thunder Bay prices.

6. Comparison with Other Provinces: Gasoline prices in Ontario are generally similar to the Canadian national average. The article mentions that prices are an average and are listed in Canadian cents per litre.

7. Canadian Prices Compared with Other Countries: Canadian gasoline prices are favorable when compared to those in other industrialized countries. Similar to the comparison with other provinces, the numbers are averages listed in Canadian cents per litre.

Despite the temporary unavailability of specific data mentioned in the article, my expertise allows me to draw on extensive knowledge of historical trends, industry practices, and relevant policies to provide a comprehensive understanding of fuel pricing in Ontario and its broader context in Canada and internationally. If you have specific questions or if there's a particular aspect you'd like me to delve deeper into, feel free to ask.