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As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter or USD 1.04 per liter. This is a notable increase from the average price of diesel fuel in Canada between June 29, 2015, and June 2, 2025, which was CAD 1.37 per liter. The price of diesel fuel in Canada has experienced fluctuations during this period, reaching a minimum of CAD 0.89 on February 8, 2016, and a maximum of CAD 2.30 on November 14, 2022. In Ontario specifically, between February 10, 2025, and May 19, 2025, the average diesel price was 1.46 per liter, with a minimum of 1.27 on May 5, 2025, and a maximum of 1.67 on February 10, 2025.
| Characteristics | Values |
|---|---|
| Current Price of Diesel Fuel in Canada | CAD 1.43 per liter or USD 1.04 per liter (as of 2 June 2025) |
| World Average Diesel Price | USD 1.12 per liter |
| Average Diesel Price in Canada (since 29 June 2015) | CAD 1.37 per liter |
| Minimum Diesel Price in Canada (since 29 June 2015) | CAD 0.89 per liter (on 8 February 2016) |
| Maximum Diesel Price in Canada (since 29 June 2015) | CAD 2.30 per liter (on 14 November 2022) |
| Average Diesel Price in Ontario (10 February 2025 to 19 May 2025) | CAD 1.46 per liter |
| Minimum Diesel Price in Ontario (10 February 2025 to 19 May 2025) | CAD 1.27 per liter (on 5 May 2025) |
| Maximum Diesel Price in Ontario (10 February 2025 to 19 May 2025) | CAD 1.67 per liter (on 10 February 2025) |
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What You'll Learn
Diesel fuel price in Canadian dollars
As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter. This is equivalent to USD 1.04 per liter. The average price of diesel fuel in Canada from June 29, 2015, to June 2, 2025, was CAD 1.37 per liter, with a minimum of CAD 0.89 on February 8, 2016, and a maximum of CAD 2.30 on November 14, 2022.
Diesel fuel prices can vary across Canada. For example, in Ontario, the average diesel price from February 10, 2025, to May 19, 2025, was CAD 1.46 per liter, with a minimum of CAD 1.27 on May 5, 2025, and a maximum of CAD 1.67 on February 10, 2025.
The price of diesel fuel in Canada is influenced by various factors, including crude oil prices, refining costs, supply and demand dynamics, and government taxes and regulations. The Canadian government may also intervene to stabilize fuel prices or address specific economic or social objectives.
Global events and market trends can also impact diesel fuel prices in Canada. For instance, the COVID-19 pandemic led to a decrease in demand for petroleum products, affecting production and pricing. Additionally, geopolitical tensions and conflicts can disrupt crude oil supplies and influence prices worldwide, which, in turn, can affect diesel fuel prices in Canada.
It is worth noting that diesel fuel prices can vary between different regions and provinces in Canada due to various factors such as local taxes, transportation costs, and competition among retailers. These factors can cause price fluctuations within the country, resulting in higher or lower prices in specific areas compared to the national average.
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Price comparison with the world average
As of June 2, 2025, the price of diesel fuel in Canada was recorded at CAD 1.43 per liter or USD 1.04 per liter. When compared to the world average diesel price, which stands at USD 1.12 per liter, diesel fuel in Canada is relatively cheaper. This price difference may be attributed to various factors, including variations in taxation, subsidies, economic conditions, and regional supply and demand dynamics.
Over the last decade, from 2015 to 2025, the average diesel price in Canada was CAD 1.37 per liter. During this period, the price fluctuated, reaching a minimum of CAD 0.89 per liter in February 2016 and a maximum of CAD 2.30 per liter in November 2022. These fluctuations can be influenced by global events, market trends, and local factors.
Comparing Canada's diesel prices to other countries can provide additional context. For instance, neighboring countries like the United States or those within the European Union may have different pricing structures due to variations in fuel taxation, environmental policies, and market regulations. Examining these comparisons can offer insights into the relative affordability or premium associated with diesel fuel in Canada.
It is worth noting that diesel fuel prices can be influenced by government interventions. Some countries or regions may choose to subsidize diesel fuel to make it more affordable for industries and consumers, while others may impose higher taxes to promote the transition to cleaner energy sources. These policy decisions can significantly impact the price at the pump and should be considered when making comparisons.
In summary, the price of diesel fuel in Canada is currently lower than the world average. However, it is essential to acknowledge that diesel prices can be volatile and subject to rapid changes influenced by global markets, geopolitical events, and local factors. Analyzing historical data and comparing prices across different regions provides valuable insights into the variability of diesel fuel costs and the factors that shape them.
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Fluctuations in Ontario
As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter (USD 1.04 per liter). This price has fluctuated over time, and there are variations within the country. For instance, in Ontario, the price of diesel fuel has varied between CAD 1.27 and CAD 1.67 per liter from February to May 2025, with an average of CAD 1.46 during this period.
Ontario, one of Canada's largest provinces by population and economy, has experienced fluctuations in diesel fuel prices in recent years. Several factors influence these changes, including global oil prices, exchange rates, seasonal demand, and government policies.
Global oil prices play a significant role in diesel fuel prices in Ontario. When crude oil prices rise on the world market, diesel fuel prices in the province tend to increase as well. However, the impact is not immediate, as there is usually a lag between global price changes and their effect on local pump prices. Additionally, the value of the Canadian dollar (CAD) relative to other currencies, especially the US dollar, influences fuel prices in Ontario. A weaker Canadian dollar can make importing oil more expensive, ultimately leading to higher prices at the pump.
Seasonal demand also contributes to fluctuations in diesel fuel prices. During the winter months, particularly in the colder regions of Ontario, there is an increased demand for heating oil, which can drive up the price of diesel fuel. This is because heating oil and diesel fuel are closely related petroleum products, and their prices tend to move in tandem. In contrast, warmer months may see a slight decrease in prices due to reduced heating oil demand.
Government policies and regulations can also impact diesel fuel prices in Ontario. Changes in fuel taxes, carbon pricing mechanisms, or environmental regulations can affect the cost of diesel. Additionally, the government may intervene during periods of extreme price volatility to stabilize prices and protect consumers from sudden spikes.
It's worth noting that diesel fuel prices in Ontario are also influenced by local market conditions, competition among fuel retailers, and distribution costs. These factors can cause slight variations in prices across different regions of the province. Overall, the fluctuations in diesel fuel prices in Ontario result from a complex interplay between global, national, and regional factors, and they can have significant implications for industries and consumers reliant on diesel-powered vehicles and equipment.
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Historical price data
As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter or USD 1.04 per liter. The average diesel price between June 29, 2015, and June 2, 2025, was CAD 1.37 per liter.
The data suggests that the Canadian government may have intervened to stabilize prices during certain periods, as indicated by long flat lines on the price charts. Additionally, the CAD/USD exchange rate has an impact on fuel prices in Canada, with fluctuations in the exchange rate potentially affecting the cost of diesel fuel.
Global factors also influence diesel prices in Canada. For example, the world average diesel price as of June 2, 2025, was USD 1.12 per liter, which is slightly higher than the price in Canada at the same time. This global price takes into account the prices and data from official government sources, regulatory agencies, petroleum companies, and major media sources.
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Impact of CAD/USD exchange rate
As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter or USD 1.04 per liter. The average price of diesel fuel in Canada from June 29, 2015, to June 2, 2025, was CAD 1.37 per liter, with a minimum of CAD 0.89 on February 8, 2016, and a maximum of CAD 2.30 on November 14, 2022.
The impact of the CAD/USD exchange rate on diesel fuel prices in Canada is complex and influenced by various factors, including:
- Fluctuations in Exchange Rates: Changes in the value of the Canadian dollar relative to the US dollar can impact the price of diesel fuel. For example, if the Canadian dollar weakens against the US dollar, the cost of importing crude oil and refined diesel fuel may increase, leading to higher prices at the pump. Conversely, a stronger Canadian dollar could result in lower diesel prices.
- Import and Export Dynamics: Canada is both an importer and exporter of crude oil and refined petroleum products. The CAD/USD exchange rate can influence the country's trade balance in these commodities. A weaker Canadian dollar may make exports more competitive, increasing the supply of diesel fuel in the domestic market and potentially driving down prices. Conversely, a stronger Canadian dollar could make imports more attractive, impacting the domestic supply and price of diesel fuel.
- Global Oil Market: The global oil market, which is predominantly priced in US dollars, can also influence diesel fuel prices in Canada. Changes in the value of the Canadian dollar relative to the US dollar can impact the country's purchasing power in the global market. A stronger Canadian dollar may allow for more favorable imports, while a weaker currency could increase the cost of crude oil and refined diesel fuel purchases.
- Government Policies: The Canadian government may intervene in the market to stabilize fuel prices or manage economic impacts. For instance, they may choose to adjust fuel taxes or implement price controls during periods of significant exchange rate fluctuations to mitigate the direct impact on consumers.
- Market Competition and Regional Variations: The impact of exchange rates on diesel prices can vary across regions within Canada due to market competition and local factors. For instance, provinces with access to refineries or lower transportation costs may be less affected by exchange rate fluctuations. Additionally, competition between fuel retailers can influence how exchange rate changes are passed on to consumers.
- Time Lag and Indirect Effects: Changes in the CAD/USD exchange rate may have a delayed impact on diesel fuel prices. This lag effect can occur due to existing fuel stock, contractual obligations, or market inertia. Additionally, exchange rate fluctuations can indirectly affect the price of diesel through their impact on input costs, production, and distribution processes within the fuel industry.
It is worth noting that while the CAD/USD exchange rate is a significant factor, diesel fuel prices in Canada are influenced by various other factors, including global oil prices, supply and demand dynamics, taxation, and regional variations in production and distribution costs.
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Frequently asked questions
As of June 2, 2025, the price of diesel fuel in Canada is CAD 1.43 per liter.
As of June 2, 2025, the price of diesel fuel in Canada is USD 1.04 per liter.
The highest price per liter of diesel fuel in Canada in the last decade was CAD 2.30 on November 14, 2022.
