Why are gas prices so high in Canada?
April 2022 – 15 min read
Increasing demand for gasoline and decreases in world oil supplies are largely responsible for higher gas prices
Higher gas prices will likely stay at least through the summer, and possibly the rest of the year
There are strategies that can help you use less gas
When will gas prices go down?
For the price of oil and gas to do down, supply and demand must be more balanced. Here are some ways that could happen:
Supply increases because:
- The war in Ukraine could end and countries begin buying Russian oil again
- OPEC increases their oil production
- Other oil producers increase production
Demand decreases because:
- People decide to drive less
- Society embraces greener energy solutions that don’t involve oil
In the short term, as long as the war continues, we can expect that prices will stay high. As the post-pandemic economy continues to ramp-up, demand for oil will continue to increase. Which will likely keep prices high.
Now that you understand more about why gas prices are going up, you may want to:
Look at ways to use less gas
Adjust your budget to account for higher gas prices, and see other places where you might be able to adjust your spending
Contact your advisor to review your investment goals, risk tolerance and advice during this market volatility
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.