In Canada, the price of gasoline is typically higher in the summer compared to winter. However, over the last few years the price has steadily increased. With political disputes impacting what we pay for gasoline, Canadians can save money at the pump this summer by signing up for rewards, reducing gasoline consumption and comparing gas prices.
It’s driving season in Canada! People all over the country are getting ready for hot weather, family vacations and long trips behind the wheel.
The recent spike in gas prices all over Canada shouldn’t surprise us – gas prices typically go up around this time of year due to an increase demand for oil. Also, gasoline in summer is more expensive to produce because of the fuel transition that happens twice a year to reduce pollution and smog. From June 1 to September 15, Canadians are sold a blend of fuel consisting of refined crude oil with compounds and additives, which compensates for limited oil supply and burns cleaner compared to winter fuel.
According to the CBC, it’s not uncommon for Canadians to see a 5 to 10 cent increase per litre for summer driving. However, the price of gasoline has steadily increased over the last 2-3 years, even throughout the winter months, which has increased the cost of goods and services in Canada. This double whammy of summer gasoline prices and Canada’s gradual incline of fuel over the last few years means that drivers are paying record-high prices at the pump.
Other factors contributing to Canada’s high gasoline prices are due to what’s happening both across our boarders and between our provinces. Political tensions, natural disasters and oil production collapses happening internationally has made the demand for gasoline higher than ever before, and because Canada doesn’t produce and refine much of its own gasoline, we’re being forced to pay more for our share.
British Columbia’s refusal to implement Alberta’s Kinder Morgan Pipeline, a pipeline that would take Alberta’s energy products through B.C. and to the west coast for export, is a hot national topic. British Columbia’s vow to block the pipeline could result in gasoline price hikes and fuel shortages.
There are multiple reasons why the price of gasoline is soaring and impacting what Canadians are paying at the pump. With long summer drives creeping around the corner, in’ternational price hikes and the annual fuel change, most Canadians are pinching pennies at the pump.
Our three tips on how to save money on gasoline will help you alleviate the stress of draining your wallet and your tank this summer.
If you’re a frequent gas buyer from one company or from a specific location, a rewards program might be your new best friend. Almost every gasoline company has money saving opportunities, allowing Canadians to save when filling up a tank or buying from the location’s convenience store. Bonuses like cash back or discounts at your local gas station are easy to obtain and free to participate in. Some gas stations offer free coffee, CAA dollars, grocery store discount coupons, and individual pointing systems with cash back rewards. With gas prices on the rise, prepare to save money this summer by participating in a rewards program at your local gas station.
READ MORE: 10 Simple Money Saving Tips for Canadians
Many regions in Canada have gas prices that are regulated, however it never hurts to compare the prices in your community. Gas is set with a maximum price, but sometimes there’s a major cost difference between stations. Whether it’s a few pennies or more, websites like GasBuddy will automatically search the station near your home with the lowest prices available. If you live in a big city and can’t find reasonable gas prices, take a short drive outside of the city for better luck finding gas that’s a few less cents per litre. Additionally, pay attention to fuel markups. Different octanes cost different prices – there’s no harm in shopping around a bit for the best price of fuel before you buy!
We’re not saying park your car in the summer and forget about it but instead practice mindful driving to reduce your fuel consumption to help save money and the environment. Avoid idling in traffic if you can, use cruise control when you’re on the highway to minimize frequent stopping and slowing down and don’t drive too fast! Driving over 100km/ hour will reduce fuel efficiency and empty your tank quickly.
READ MORE: Spring Maintenance Tips for Car Owners
Gas prices in the summer are higher compared to any other season, and unfortunately, there’s not much we can do about it. Especially given the economic circumstances happening all over the world, it’s a good idea to compare gasoline prices in your city, reduce your overall fuel consumption and sign up for a rewards program at your local gas station sooner rather than later! Happy summer and drive safe out there!
Your online application takes only 2 minutes to complete and we only ask for information we actually need.
Or feel free to call us at 1-888-865-6402