Why gas prices differ between provinces

Drivers crossing a provincial border often notice a jump in the price per litre. The difference is rarely about the fuel itself; it mostly comes down to taxes, transport costs and how many stations compete nearby.

Taxes make up a large share

Every litre carries federal excise tax and GST, plus provincial fuel taxes that vary widely. Some provinces also apply harmonized sales tax to the full pump price, which widens the gap further.

Distance and supply

Regions far from refineries or pipelines pay more to move fuel by truck, rail or ship. That is one reason northern communities and the territories usually see the highest prices.

Local competition

Cities with many stations close together tend to have tighter pricing. Rural highways with few options often price higher simply because there is less pressure to compete.

What it means for you

Comparing prices before a long trip can help you decide where to fill up. Use the province pages to see typical price ranges, and always check the price on the pump before paying.