Energy and Environmental Policy Trends: What’s Driving the Cost of Driving?

Canadians are and will be paying higher gasoline prices in the near term is because the price of crude oil has increased due to decreased global oil Wholesale gasoline prices are dependent on two primary factors: crude oil inventories and OPEC+ productions targets. [...] The cost and qualities of crude oil vary from region to region and are affected 0.4 by regional geology and global and local supply and demand conditions. [...] WTI (Cushing, Oklahoma) Brent (North Sea, Europe) The refining and transportation margins are the difference between the cost of input crude oil Figure 2: Refining margin and the price of wholesale gasoline. [...] This margin covers capital costs and depreciation of 0.7 refineries, the cost of energy required to refine crude into gasoline, and the cost of 0.6 transportation from a refinery to a wholesale outlet. [...] The size of this Edmonton-WCS Halifax-Brent Montreal-Brent markup is related the cost of transporting gasoline from a wholesale distributer to a retail Toronto-WTI Vancouver-WCS gasoline station and the level of local retail competition within a region.