Gas prices: Here’s how they determine what you pay at the pump.

Posted on: Monday, July 14th, 2014

Fill up

Energy analysts and gas-price watchers say high gasoline prices across Canada aren’t expected to drop significantly until the summer weather and sectarian conflict in oil-rich Iraq cool off.

In mid-June, prices across the country made records. Some gas stations in Toronto reached an unprecedented 142 cents a litre for regular gas, while Vancouver got as high as 152.7. In April, Montreal had an average price of 153 cents, giving it the dubious distinction of having the highest gas prices in Canada, according to the web site TomorrowsGasPriceToday.com.

According to GasBuddy.com, which tracks pump prices locally and across the country, the current average for Canada is 134.8 cents, which is more than four cents over the average price at this time last year (130.4).

Canadian gas prices peaked in July 2008, based on a weekly average. Natural Resources Canada had the average price at 140.1 cents the week of July 15, 2008, and Kent Group Ltd. had it at 141.3 cents the week before that.

Prices across the country vary widely because of different provincial and territorial tax regimes. CBC News takes a look at what exactly goes into determining the price of a litre of gas at the pump.

Read more of this article on the CBC website by clicking here.

July 11, 2014