How Stuff Works - Refining 101
Gas prices in unison? 1200 people help me explain.

Gas Prices that are so 2007

Kids_gas_pump_2  I was just reading the Fuel Focus Annual Review for 2007 for kicks and found a few interesting bits of information about last year's gas prices you might also find interesting.  Or not.  Relax, I only picked 5 things.

There's a lot in the report.  I offer the following 5 items I found interesting

  1. Average Cdn gas prices increased 4 cents per litre to $1.02 in 2007 compared to 2006.
  2. Canadian and American gas prices (wholesale that is) were only seperated by a penny in 2007 and 2006.  Now we don't get to buy gas without the taxes, but this puts the amount of fuel taxes Canadians pay into perspective.
  3. The healthy Canadian dollar helped drivers out at the pumps.  The rising Canadian dollar helped "dampen the impact of higher crude oil costs"   We had a bit of a discussion on this before.
  4. Average gasoline prices dropped rapidly in January, peaked in May at $1.16 and ended the year at $1.06.  They remained above a dollar a litre for most of 2007.
  5. Average taxes - provincial and federal - on a litre of gasoline were 32 cents, which is actually down three-tenths of a cent from 2006.  Likely due to the drop in the GST which was incorporated into the price at the pump as soon as it was confirmed.

So that was 2007.  I look forward talking with many of you about gas prices and other diversions in 2008 (minus January).

Photo Credit: Brave Heart


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M Micallef

I would like to know how that " Canadian Average is calculated???

In 2005/06 is was paying ~ 70-79 cents/litre - 2007/2008 $1.29 / litre...????

My math may be a little rusty but even averaged out over the four years that is a whole lot more than 4 cents???

Nice try...!

Jon Hamilton

Thanks M. Sorry for the delay in responding.

The main source for the average Canadian price for gasoline is MJ Ervin & Associates. Not to bore you, but the methodology they use is below. It takes into account the price in numerous jurisdictions and is an average, so it may not be exactly what you paid. The Cdn average gas price (with taxes) for 2007 was $1.02. 2006 was 97.7. 2005 was 92.3.

MJ Ervin Methodology

The gasoline, diesel and automotive propane pump prices are collected directly from individual dealers (gas stations) every Tuesday morning at 10:00 AM local time by telephone. The prices reported in the weekly reports are thus a ‘snapshot’ of the prices on that particular day and do not represent an average of price fluctuations throughout the week. The telephone survey encompasses 38 cities across Canada and includes dealers from the major (branded) oil companies as well as independents. Only self-serve prices are collected for gasoline and a combination of self-serve and full serve prices are collected for both diesel and propane.

Pump prices include all applicable federal, provincial and urban (municipal) taxes as well as sales taxes where applicable. The ex-tax price represents the price of the fuel before any taxes are levied.

The Canada average represents a weighted average based on relative annual retail sales volumes as reported by StatsCan using the following 10 cities: St. John’s, Charlottetown, Halifax, St. John, Montréal, Toronto, Winnipeg, Regina, Calgary and Vancouver.


If gas prices are a direct result of oil price why is gas so much higher this April 2011 compared to april 2008 when oil was the same price? With many more fuel efficient cars on the road shouldn't demand decrease and therefore lowering the need to refine more oil and decreasing the price of gas? I don't believe that more cars equals more demand, with all the emission regulations and saftey certification regulation fuel cosumption should be reduced if not remain the same. There are many more newer cars on the road today then there ever was, so why are we getting ripped off at the pump?

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