83 entries categorized "Gas Pricing"

Diesel Vehicles Making a Comeback

Diesel fuel
Photo: iStockphoto

While I was researching last week's post about the superior fuel economy of manual transmissions, I came across several articles about fuel economy and diesel engines. Formerly much maligned, diesel is making a mainstream comeback here in North America - and it has its benefits.

What's so great about diesel fuel? As we noted in our post Diesel - Not What It Used to Be back in 2011, diesel:

"…takes less refining to create it (versus gasoline), and with the recent moves to ultra low sulphur diesel fuel (what we at Petro-Canada offer), it produces less greenhouse gas. Improvements have been made to vehicle engines for "smarter" consumption, meaning these engines are more efficient and less polluting than before.

Diesel fuel has always been an important source for trucking, boats, farming and more, but now the benefits can be enjoyed by consumers, especially as manufacturers increase their options."

Continue reading "Diesel Vehicles Making a Comeback" »

Long Weekend Gas Pricing

Gas Prices

As the first long weekend of the warm weather days is fast approaching, we thought we would take the time to comment on the regularly occurring question that we receive: “Why do gas prices appear to go up right before a long weekend?”. This question usually comes up before every long weekend we have. We have written several posts about this topic and we wanted to enlighten our readers about it again, as the Victoria Day long weekend is right around the corner. 

We already know that gas prices are affected by a number of factors including cost of crude and the cost of gasoline at the wholesale level. This was the subject of our last post on gas pricing: “Gas Pricing: What Factors Affect the Prices You See At The Pump”. We also have discussed how powerful an effect local competition has on gas prices too in our PumpTalk video: “Why Do Gasoline Prices Go Up and Down?”  

Now, the question at hand – Why do gas prices seem to go up right before a long holiday weekend? Back in June, our post, “Dispelling the myth about long weekend gas price hikes” linked to a report that was released by M.J. Ervin & Associates (a division of the Kent Group). This report reviewed pricing data around long weekends in Canada from the present, back to 2006. In the report, Michael Ervin concluded that: 

    “The aggregated results indicate that week-over-week retail prices are no more likely to increase during the week immediately before a holiday. In fact, our findings revealed that the number of price increases during the week of a holiday was slightly less than that of weeks not related to holidays.” 

You can read the full report here: Report: Holiday Weekends and Fuel Price Increases: Fact or Myth?

The press release can be found here: Holiday Weekends and Fuel Price Increases: Fact or Myth?

We hope this helps, and as always, we welcome comments and feedback from our readers. PumpTalk was created to facilitate the discussion, so let’s keep the conversation going!

- Julie S.

Gas Pricing: What Factors Affect the Prices You See At The Pump

Gas Prices

Gas prices are always a common subject for PumpTalk readers, so we decided to provide you with an update on pricing and what elements make up the price you see at the pump.  The two largest factors that influence gas prices are crude oil costs and taxes.  Following that is the cost of refining and marketing – which is all costs of operations – including the costs of refining and distribution, along with all marketing and operational expenses at the retail level.  

Other elements to consider are local competition and commodity gasoline prices. We discussed this in more detail in a previous post on gas pricing
Let’s focus on the largest piece of the puzzle – crude oil pricing.

Continue reading "Gas Pricing: What Factors Affect the Prices You See At The Pump" »

Global Demand and Diesel Prices

Diesel Prices

We have had many questions come in to the PumpTalk blog regarding diesel pricing and why they continue to be above gasoline prices. In this week’s post, we’ll help answer these questions.
First, I’d like to remind everyone that diesel has more than one use versus its sister, gasoline, whose primary use is transportation. This means that, unlike gasoline, demand for diesel is based on more than vehicle population. Diesel has many other uses in industries like in freight, construction, agriculture and ports.

Now let’s shed some light on pricing.

Continue reading "Global Demand and Diesel Prices" »

WTI vs Brent Crude - What do they mean?

Pump Jack
Photo: iStockphoto

When we're talking about oil prices, we see these two terms in the news a lot: WTI and Brent Crude. What do they mean - and what's the difference between the two?

Not all crude oil is created equal - different API gravity (an indication of the ability of the crude to make gasoline) and sulfur content, for example, affect the grade and classification of crude oil. WTI (an acronym for "West Texas Intermediate") and Brent Crude are two different classifications of crude oil.

Continue reading "WTI vs Brent Crude - What do they mean?" »