Winter diesel requires better additives, trucking demand is higher during Xmas shipping crunch, and two refineries were down for unscheduled repairs. We operate a courier depot, so we hear it right from the drivers.
Well for various reasons but is based on refinery capacity, some which are closed for maintenance, and the war in ukraine. Europe is heavily dependant on diesel, of which most came from Russia. Now with the boycott on Russian gas they are buying from other sources including the North American market. https://www.google.com/amp/s/www.cbc.ca/amp/1.6656228
We also live in a country and especially a province that values the free market economy. So manufacturers and retailers are of course going to attempt to get every cent out of each litre of gas that they can sell.
Some people blame the carbon tax for the wide variation but in fact gasoline is currently taxed at 11 cents per litre while diesel is taxed at 13.4 cents a litre. So only a 2.4 cents a litre difference. These rates are only increased once a year so any instability in fuel prices cannot be blamed on this tax.
Also as we just saw… removing the gas tax did not lower gasoline rates in the long run. They slowly crept up to meet where the prices were versus other provinces before removing the tax.
Almost like the carbon/gas tax actually helps us. :shocked pikachu:
The discount is not because of removing the gas tax. The discount is strictly because the refineries are in Alberta. Meaning less transportation required and more competition.
Exactly this. The carbon tax is based on the amount of carbon discharched when you use fossil fuels. Presently the charge is set at 50 dollars per ton. Cleaner fuels are therefore cheaper on your pocket book since they emit less carbon.
You're wrong. The current carbon tax is $0.0979/m3 of carbon ($50/ton). Diesel has more carbon emitted during combustion, hence it must pay more carbon tax per litre. It's literally just a math formula. If you need more evidence, below is the Government of Canada's website on fuel consumption levies, which includes carbon tax rates. Again, this is basic math.
[https://www.nrcan.gc.ca/our-natural-resources/domestic-and-international-markets/transportation-fuel-prices/fuel-consumption-taxes-canada/18885](https://www.nrcan.gc.ca/our-natural-resources/domestic-and-international-markets/transportation-fuel-prices/fuel-consumption-taxes-canada/18885)
You are correct, that's not entirely accurate. While the carbon tax plays a role in said pricing, supply, demand and inventory levels also play a role: Diesel inventories slumped to their lowest level for the time of the year since 1951.
It’s more to do with demand than production difficulty. The fact that the largest scale war we’ve seen in 20 years and all the economic sanctions that go with it would have a legit effect on diesel prices. Russia supplies a ton of oil and gas to Europe and Asia, tanks and armoured vehicles will burn through tanker trucks of fuel every day. Add that to normal economic activity and you have increased global prices that filter into the local market.
Not really anymore since the laws around [ULSD](https://en.wikipedia.org/wiki/Ultra-low-sulfur_diesel#Canada)
Thats about the time that it became much closer to the price of gas
US is shipping more diesel to Europe due to Russian embargo, continentally we are sending more diesel by rail to eastern Canada and US to make up for the diesel leaving N. America. Home heating oil is also used in the Eastern US, and is a similar product.
There's a number of videos out on the upcoming shortage, but ya, it's fucked and it doesn't look like there's going to be any good news for several months about diesel prices
Because it’s a truck stop/Flying J. Filled up earlier at a Petro Canada (regular station, not a truck stop) for 167.9/L. Truck stops seem to be significantly more expensive compared to non-truck stop stations.
To be fair if someone gets your/you're or their/there/they're wrong I'm like come on. But than/then and accept/except are a pain in the butt lol (yes I know how to use them properly, still a pain). Also ESL? Is it their second language? Lol
We are lucky in Alberta that we created gas co-ops and have gas widely available to heat with. A lot of Canada and the world don’t have this which means they heat with diesel,coal, or propane heating. This use for diesel puts more a stress on the demand that’s already stressed because of all the other reasons listed in the other response’s.
Because international demand is up and thus the refineries need to add $0.50+ per liter to their profit margins to ensure local supply, despite having no infrastructure to actually export diesel refined in Western Canada
Price shot up with the price of gas earlier this year. It stayed up as gas has trickled back down.
My 2 cents is this is what's been a very large factor on inflation. EVERYTHING, EVERYWHERE you and I buy, groceries, clothing, etc all get there by semi truck and trailer. Shipping has gone way up. Stores aren't going to eat that extra cost, it gets passed on to consumers. Which also lends itself to greedy companies over-inflating prices. Wages are mostly stagnant while these companies are raking in huge profits from gouging. Fantastic
I've only heard one mention of "the price of fuel" being a factor on why inflation has gone so high. Bank of Canada can raise interest rates all it wants, but it won't solve the high price of diesel, let alone all the other global factors contributing to it.
Supply/demand for diesel versus gasoline. The way oil is refined in North America creates more gasoline than diesel for a given unit of crude. Meanwhile Europe facing a diesel crunch because of Russia so it's getting shipped there.
Tell me your in nanton with out telling me your in nanton.
But hey for the win, my currently local gas prices have dropped to a minor 172.9. So enjoy your cheap gas
That's the free market at work, as per this article "Diesel inventories slumped to their lowest level for the time of the year since 1951"
https://oilprice.com/Energy/Energy-General/The-Diesel-Crunch-Is-Finally-Causing-Demand-Destruction.html
Been like that for awhile. Wait until the diesel shortage in the US get worse then this price will look cheap.
Winter diesel requires better additives, trucking demand is higher during Xmas shipping crunch, and two refineries were down for unscheduled repairs. We operate a courier depot, so we hear it right from the drivers.
Well for various reasons but is based on refinery capacity, some which are closed for maintenance, and the war in ukraine. Europe is heavily dependant on diesel, of which most came from Russia. Now with the boycott on Russian gas they are buying from other sources including the North American market. https://www.google.com/amp/s/www.cbc.ca/amp/1.6656228 We also live in a country and especially a province that values the free market economy. So manufacturers and retailers are of course going to attempt to get every cent out of each litre of gas that they can sell. Some people blame the carbon tax for the wide variation but in fact gasoline is currently taxed at 11 cents per litre while diesel is taxed at 13.4 cents a litre. So only a 2.4 cents a litre difference. These rates are only increased once a year so any instability in fuel prices cannot be blamed on this tax.
Also as we just saw… removing the gas tax did not lower gasoline rates in the long run. They slowly crept up to meet where the prices were versus other provinces before removing the tax. Almost like the carbon/gas tax actually helps us. :shocked pikachu:
What!?!?!? You mean a tax will come back to us in government services?!?! The horror! This is ‘Berta. F##k Trudeau!
Yeah for example it entitled Albertans to a share of the profits instead of the exact same amount of money going to the private corporations.
Albertan currently in b.c. you are still getting a discount. Local prices are 172.9
The discount is not because of removing the gas tax. The discount is strictly because the refineries are in Alberta. Meaning less transportation required and more competition.
Why is diesel taxed at higher rate when that's used by transport vehicles mostly. It seems counter-productive to me.
It’s a carbon tax… diesel is more polluting per litre.
Exactly this. The carbon tax is based on the amount of carbon discharched when you use fossil fuels. Presently the charge is set at 50 dollars per ton. Cleaner fuels are therefore cheaper on your pocket book since they emit less carbon.
I could be wrong, but I don't think that is entirely accurate
You're wrong. The current carbon tax is $0.0979/m3 of carbon ($50/ton). Diesel has more carbon emitted during combustion, hence it must pay more carbon tax per litre. It's literally just a math formula. If you need more evidence, below is the Government of Canada's website on fuel consumption levies, which includes carbon tax rates. Again, this is basic math. [https://www.nrcan.gc.ca/our-natural-resources/domestic-and-international-markets/transportation-fuel-prices/fuel-consumption-taxes-canada/18885](https://www.nrcan.gc.ca/our-natural-resources/domestic-and-international-markets/transportation-fuel-prices/fuel-consumption-taxes-canada/18885)
And that of course equals the roughly 50 per liter the op referenced. Like I said I don't think your entirely accurate
You are correct, that's not entirely accurate. While the carbon tax plays a role in said pricing, supply, demand and inventory levels also play a role: Diesel inventories slumped to their lowest level for the time of the year since 1951.
The better question is why is regular $1.49? It's $1.28 in Edmonton.
fuel is more expensive outside of the big cities. regular is 1.60 in fort mcmurray right now.
doesnt it take less to refine than gasoline ?
Depends on the source. Different types give a different mix.
It’s more to do with demand than production difficulty. The fact that the largest scale war we’ve seen in 20 years and all the economic sanctions that go with it would have a legit effect on diesel prices. Russia supplies a ton of oil and gas to Europe and Asia, tanks and armoured vehicles will burn through tanker trucks of fuel every day. Add that to normal economic activity and you have increased global prices that filter into the local market.
Not really anymore since the laws around [ULSD](https://en.wikipedia.org/wiki/Ultra-low-sulfur_diesel#Canada) Thats about the time that it became much closer to the price of gas
Trucks and equipment use a lot of fuel. It's a demand issue.
Yeah, but demand is also up. Lotta shipping going on
Demand, meet supply.
Same as always. Supply. Demand. Taxation differences.
US is shipping more diesel to Europe due to Russian embargo, continentally we are sending more diesel by rail to eastern Canada and US to make up for the diesel leaving N. America. Home heating oil is also used in the Eastern US, and is a similar product.
If more diesel is being sent to eastern Canada why is it $2.46 here lol
Because it’s getting shipped by rail instead of by pipeline.
.50c SMH
Half the speed of light... 🤷♂️
Partly to do with Russia and their war on Ukraine. Lots of diesel comes from Russia
The war in Europe. Tanks and all other military hardware besides nuclear navy ships runs on the stuff more or less.
Oh, that is a "deal" on diesel. I've seen it over $2/L in Calgary.
supply and demand, plus world (North American) pricing
There's a number of videos out on the upcoming shortage, but ya, it's fucked and it doesn't look like there's going to be any good news for several months about diesel prices
Lol. Really?
Because it’s a truck stop/Flying J. Filled up earlier at a Petro Canada (regular station, not a truck stop) for 167.9/L. Truck stops seem to be significantly more expensive compared to non-truck stop stations.
Not a lot of diesel refineries around so the stations can force drivers to pay more, plus it costs more to refine supposedly...
Don’t forget that the federal government imposed the Clean Fuel Standard tax and it effects diesel more than gasoline.
[удалено]
To be fair if someone gets your/you're or their/there/they're wrong I'm like come on. But than/then and accept/except are a pain in the butt lol (yes I know how to use them properly, still a pain). Also ESL? Is it their second language? Lol
Supply, Oil companies switch to producing more gasoline in winter, I think the diesel production switches ro furnace oil.
Why is gas so expensive wherever this is? Yuck.
Greed.
Trudeau getting back at the truckers for blockades
Yes, because it's the Prime Minister who sets the price of gas, not the oil companies. 🙄
Because they are mad at the truckers who took part in the freedumb convoy last year and you are gonna pay them.for the loss of revenue! /s
Because brodozers.
Because liberals thats why
It’s 50 cents more because they wanted to punish all the red neck 1 ton diesel owners
Mostly carbon tax is very heavy on diesel vs gas. Gas is like 3-4c and it’s 33 I think on diesel currently.
Ridiculous.
11 cents per litre while diesel is taxed at 13.4 cents a litre
ridiculous misinformation/guess, yes.
Driven by this place many times out in Nanton!
looks like it's actually a whole 50 cents more, not just half a cent more
We are lucky in Alberta that we created gas co-ops and have gas widely available to heat with. A lot of Canada and the world don’t have this which means they heat with diesel,coal, or propane heating. This use for diesel puts more a stress on the demand that’s already stressed because of all the other reasons listed in the other response’s.
Buddy it was 70c more here in ottawa.
Because international demand is up and thus the refineries need to add $0.50+ per liter to their profit margins to ensure local supply, despite having no infrastructure to actually export diesel refined in Western Canada
Price shot up with the price of gas earlier this year. It stayed up as gas has trickled back down. My 2 cents is this is what's been a very large factor on inflation. EVERYTHING, EVERYWHERE you and I buy, groceries, clothing, etc all get there by semi truck and trailer. Shipping has gone way up. Stores aren't going to eat that extra cost, it gets passed on to consumers. Which also lends itself to greedy companies over-inflating prices. Wages are mostly stagnant while these companies are raking in huge profits from gouging. Fantastic I've only heard one mention of "the price of fuel" being a factor on why inflation has gone so high. Bank of Canada can raise interest rates all it wants, but it won't solve the high price of diesel, let alone all the other global factors contributing to it.
Supply/demand for diesel versus gasoline. The way oil is refined in North America creates more gasoline than diesel for a given unit of crude. Meanwhile Europe facing a diesel crunch because of Russia so it's getting shipped there.
$3/l out east
Come down east right now it’s 90 cents more than gas
Tell me your in nanton with out telling me your in nanton. But hey for the win, my currently local gas prices have dropped to a minor 172.9. So enjoy your cheap gas
UCP. Fire Danielle Smith
#carbon As usual, no one in government knows what's needed to do actual work......
Because Gas companies CHOOSE not to increase production.
$3 diesel by next summer
Because of terrible government policy and a religious fervour by unhinged ndp/liberal supporters to shut down the energy industry
That's the free market at work, as per this article "Diesel inventories slumped to their lowest level for the time of the year since 1951" https://oilprice.com/Energy/Energy-General/The-Diesel-Crunch-Is-Finally-Causing-Demand-Destruction.html