Understanding gasoline prices : an examination of recent Canadian gasoline price increases. : M4-128/2005E-PDF

The Canadian oil industry often faces criticism from consumers and the media with respect to gasoline prices. Consumer frustration over frequent changes in pump prices is exacerbated by the fact that gasoline is the only commodity in our society where consumers can do their comparison shopping from the comfort of their automobile. This paper will examine the factors that influence gasoline prices in Canada. It will begin with an in depth look at each of the pump price components and discuss the factors that influence them. The paper will conclude with an examination of how some of the key factors, such as crude oil prices and exchange rates, have shaped gasoline prices over the past few years.

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