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this post was submitted on 05 Nov 2024
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Pump prices are affected by oil price: when oil goes up, pump price goes up. When oil goes down, pump price goes up. Simple as that ;)
Here's the breakdown in Canada:
Oil price constitutes less than half of the pump price, sometimes a lot less - a third in Vancouver. As a result movements in oil price could be significantly attenuated. Sometimes even completely offset by movements in other components of the pump price. And this isn't theoretical. I've seen plenty of examples over the years.
Source: https://www.canadianfuels.ca/our-industry/gasoline-prices/