A recent drop in the price of oil isn't really translating into relief at the gas pump. The benchmark price was about $56 dollars a barrel last week, a drop of about $20 dollars -- or close to a quarter of the price -- since early October.
However, prices at most gas stations have barely moved. A litre of unleaded will still cost $1.33 in Kenora or $1.38 in Dryden. There may be some relief for drivers in Vermilion Bay, where it costs $1.29 a litre.
According to the Canadian Automobile Association (CAA), the cost of crude oil accounts for about half of the price of gas. Provincial taxes, which vary across the country, and federal taxes comprise about another 30 per cent, while the rest is:
- refining and marketing cost,
- the cost to transport the gasoline and
There may also be a number of other factors that influence the price at the pumps:
- Seasonal changes
- Weather conditions
- Geopolitical conflict
- Increased demand
- Status of oil and gas reserves
- Refining capacity
- Value of the US dollar
For more information: