Why Gas Prices Are Rising — and How to Save Money on Fuel in Canada
(With current Vancouver prices)
Global oil prices have recently come under pressure again due to rising tensions in the Middle East. Any threat to oil supplies from the region can immediately affect global markets — and ultimately the price drivers pay at the pump.
Even when geopolitical conflicts happen thousands of kilometres away, their effects are quickly felt by drivers in cities like Vancouver, Toronto, and Calgary.
Let’s take a closer look at why gas prices rise, what drivers are paying today in Vancouver, and how Canadians can reduce their fuel expenses.
Current Gas Prices in Vancouver
According to recent fuel price monitoring data:
- The average gasoline price in Metro Vancouver is about $1.70–$1.73 per litre.
- Depending on location and brand, prices may range from $1.65 to $1.80 per litre.
This means:
| Parameter | Value |
|---|---|
| Average price | ~$1.72 per litre |
| 50-litre tank | ~$86 |
| 60-litre tank | ~$103 |
With prices around $1.72 per litre, filling up a typical vehicle can easily exceed $100 per tank.
Why Gas Prices Are Increasing
1. Geopolitical tensions
Oil is a global commodity, meaning its price is driven by worldwide events.
One of the biggest concerns right now involves potential disruptions near the Strait of Hormuz, a narrow waterway between Iran and the UAE.
Approximately 20% of the world’s oil supply passes through this route. Any threat to shipping can quickly trigger price spikes in global markets.
Even the expectation of supply disruptions can push oil prices higher.
2. Seasonal fuel blends
Every spring, refineries switch to summer gasoline blends, which are more environmentally friendly but more expensive to produce.
This seasonal transition often pushes fuel prices higher across North America.
3. Taxes
Canada has relatively high fuel taxes compared with many countries.
In British Columbia, the price of gasoline includes:
- Federal fuel tax
- Provincial fuel tax
- Carbon tax
- Metro Vancouver transportation levy
Together, taxes can represent 30–40% of the pump price.
4. Limited refining capacity in Western Canada
Canada produces large amounts of crude oil, particularly in Alberta. However, refining capacity in Western Canada is limited.
As a result, some refined fuel products are imported and priced according to global markets.
What Could Happen Next
If geopolitical tensions in the Middle East continue:
- Oil prices could remain around $90–$100 per barrel
- Gasoline in Canada could rise 10–30 cents per litre
Price increases are especially common during summer travel season.
How Canadians Can Save Money on Gas
1. Use gas price comparison apps
Popular apps include:
- GasBuddy
- Waze
- GasWizard
Price differences between stations in the same area can reach 10–15 cents per litre.
For a 55-litre tank, that can mean $5–$8 saved per fill-up.
2. Fill up earlier in the week
Gas prices in many Canadian cities follow a weekly cycle:
| Day | Typical Price |
|---|---|
| Monday | Lower |
| Tuesday | Lower |
| Wednesday | Moderate |
| Thursday | Rising |
| Friday | Highest |
The best days to fill up are often Monday or Tuesday.
3. Use fuel reward programs
Several fuel chains offer discounts through loyalty programs.
Examples include:
PC Optimum (Esso / Mobil)
Up to 7 cents per litre
Journie Rewards (Chevron)
Up to 10 cents per litre
Petro-Points (Petro-Canada)
Points redeemable for fuel.
4. Use credit cards with fuel cashback
Some Canadian credit cards provide 3–4% cashback on gas purchases, such as:
- CIBC Dividend Visa Infinite
- Scotia Momentum Visa Infinite
- Rogers World Elite Mastercard
If you spend about $250 per month on fuel, this could return $100–$150 per year.
5. Maintain proper tire pressure
Underinflated tires increase fuel consumption by 3–5%.
It’s one of the simplest and most overlooked ways to reduce fuel costs.
6. Avoid aggressive acceleration
Rapid acceleration and hard braking can increase fuel consumption by 20–30%.
For most vehicles, the most efficient highway speed is around 80–100 km/h.
How Much Can Drivers Actually Save?
Let’s assume a typical driver spends about $2,500 per year on gasoline.
By applying a few simple strategies:
| Method | Potential Savings |
|---|---|
| Choosing cheaper stations | $150 |
| Loyalty programs | $100 |
| Fuel-efficient driving | $200 |
Total potential savings could reach $400–$500 per year.
Final Thoughts
Gas prices in Canada are influenced by global factors — including wars, supply disruptions, and decisions by major oil-producing countries.
However, drivers still have some control over their fuel costs.
By choosing the right stations, using reward programs, and adopting fuel-efficient driving habits, Canadians can reduce their fuel expenses significantly.
Even small changes in everyday driving habits can save hundreds of dollars per year.
In the next article, I will share 5 lesser-known ways to save money on gasoline in Canada — strategies commonly used by professional drivers, taxi drivers, and rideshare drivers.
Some of these methods can reduce fuel costs by an additional 10–20%.
Translation of the article into Russian: Why Gas Prices Are Rising — and How to Save Money on Fuel in Canada
Mykhaylo Arbetov, CFP, FMA
Financial Advisor & Planner (Vancouver)
Certified Financial Planner — Michael Arbetov