NEB releases a new report exploring Canada’s gasoline supply chain
For Immediate Release
May 14, 2019 – Calgary, Alberta – National Energy Board
Canada’s vast gasoline production and transportation infrastructure ensures flexible and reliable supply for Canadians but unique market conditions in each region drive prices at the pump, according to a new report released by the National Energy Board (NEB).
The report titled Where does Canada's gasoline come from?, explains the journey a barrel of crude oil travels from the well head into gas tanks of Canadians. It also features an interactive dashboard that allows Canadians to view daily gas prices and explore how prices have changed over time in 70 major centres in Canada.
Gasoline prices are determined by a combination of crude oil pricing, refining margin, marketing margin and taxes; fluctuations in any of those components will affect the price consumers pay at the pump.
The NEB monitors energy markets and assesses Canadian energy requirements and trends. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the NEB publishes regularly as part of its ongoing market monitoring.
“Gasoline production in Canada is driven by local markets and a complex supply chain system. Our report gives insight into factors that cause gas prices fluctuations while explaining gasoline supply and demand dynamics in Canada.”
– Jean-Denis Charlebois, Chief Economist, National Energy Board
- In 2018, Canadians consumed 46 billion litres of gasoline, which represented 42 per cent of total domestic refined petroleum product sales.
- Out of 17 refineries in operation, only 14 produce gasoline in Canada: six in Western Canada, four in Ontario, two in Quebec and two in the Atlantic Provinces
- Although production varies by refinery, gasoline comprises the largest portion of refinery output at 36 per cent, on average.
- Quebec generally imports the most gasoline, much of which is subsequently shipped to Ontario. The Atlantic Provinces and British Columbia are the next largest importers of gasoline with the Yukon receiving occasional imports from Alaska.
- In 2017, the E.U. exported 5 billion litres to Canada while the U.S. exported 1.2 billion litres of gasoline to Canada.
- The transportation of gasoline from terminals to retail locations is done almost exclusively by truck.
The National Energy Board is an independent federal regulator of several parts of Canada’s energy industry. It regulates pipelines, energy development and trade in the public interest with safety as its primary concern. For more information on the NEB and its mandate,please visit the National Energy Board website.
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