Katerina Swanson
The price of diesel fuel in Canada is a topic of interest to many, especially those residing in the country and those with vehicles that require diesel. As of June 16, 2025, the price of diesel fuel in Canada was CAD 1.45 per liter, which is lower than the world average of USD 1.13. This price is not fixed and has fluctuated over the years, with a minimum of CAD 0.89 recorded in 2016 and a maximum of CAD 2.30 in November 2022. The price at the pump is influenced by various factors, including the wholesale price, which is influenced by the cost of crude oil, and taxes, including the federal carbon tax.
| Characteristics | Values |
|---|---|
| Current price of diesel fuel in Canada | CAD 1.45 per liter or USD 1.06 per liter |
| World average diesel price | USD 1.13 per liter |
| Average diesel price from 13 July 2015 to 16 June 2025 | CAD 1.37 per liter |
| Minimum diesel price in the above period | CAD 0.89 on 8 February 2016 |
| Maximum diesel price in the above period | CAD 2.30 on 14 November 2022 |
| Price unit in Ontario | Canadian cents per litre |
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What You'll Learn
Current price of diesel fuel in Canada
As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per liter or USD 1.06 per liter. The average diesel price between July 13, 2015, and June 16, 2025, was CAD 1.37 per liter, with a minimum of CAD 0.89 in February 2016 and a maximum of CAD 2.30 in November 2022. The world average diesel price is currently USD 1.13 per liter.
The price of diesel fuel in Canada is not uniform across the country and can vary by region. For example, the Government of Ontario tracks motor fuel prices across the province and publishes the findings weekly. However, their website currently states that the data is temporarily unavailable.
In general, gasoline prices in Ontario are similar to the Canadian national average. The wholesale price of gasoline and diesel in Ontario is influenced by North American wholesale markets at specific locations, such as the New York Harbor for Toronto prices and Edmonton for Thunder Bay prices.
The Government of Canada has implemented regulations that ceased the application of the federal fuel charge effective April 1, 2025. Additionally, they removed the requirement for provinces and territories to have a consumer-facing carbon price as of the same date.
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How often diesel prices change in Canada
As of June 16, 2025, the price of diesel fuel in Canada was CAD 1.45 per liter or USD 1.06 per liter. The average price of diesel fuel in Canada from July 13, 2015, to June 16, 2025, was CAD 1.37 per liter, with a minimum of CAD 0.89 in February 2016 and a maximum of CAD 2.30 in November 2022.
Diesel prices in Canada can vary frequently due to several factors that influence the pump price. CAA National provides the daily national average of gas prices, allowing individuals to compare prices across different regions and time periods. The price of gasoline can vary based on factors such as the type of gas, regional taxes, competition, sales volume, and station characteristics such as type and location.
Crude oil and refined gas are traded on commodities markets, which can cause fluctuations in gas prices. When demand for crude oil increases and supply decreases, the price of gas tends to rise. Price retail margins, which represent the difference between the pump price and acquisition cost, including operating costs, can also impact the final price.
Seasonal patterns can also influence diesel prices in Canada. For example, shorter days and unfavorable weather conditions can lead to less driving, resulting in lower gas prices. Additionally, oil costs tend to be lower during certain seasons, further contributing to the decrease in gas prices.
While diesel prices can fluctuate due to market dynamics and seasonal variations, the Canadian government and regulatory agencies play a role in stabilizing prices. In some cases, long periods of stable prices may indicate government intervention in price fixing to maintain consistency across the country.
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How diesel prices in Canada compare to the world average
As of June 16, 2025, the price of diesel fuel in Canada was CAD 1.45 per liter or USD 1.06 per liter. The world average diesel price at this time was USD 1.13 per liter. This means that the price of diesel fuel in Canada is slightly lower than the world average.
Looking at historical data, the average diesel price in Canada from July 13, 2015, to June 16, 2025, was CAD 1.37 per liter. The minimum price during this period was CAD 0.89, recorded on February 8, 2016, and the maximum price was CAD 2.30 on November 14, 2022.
Comparing these historical prices in Canada to the world average in 2016, we see that the Canadian average diesel price of CAD 1.37 per liter (USD 0.87 per liter assuming a 2016 exchange rate) was significantly lower than the world average of USD 1.13 per liter.
The variation in diesel prices across countries is influenced by various factors, including local taxes, production and supply dynamics, and the overall energy market situation. It is worth noting that the world average diesel price is influenced by the inclusion of countries with extremely high and low prices, such as Iceland's high price of USD 1.63 per liter and Libya's low price of USD 0.11 per liter, as recorded in 2016.
In summary, while the current diesel prices in Canada are close to the world average, historical data suggests that Canadian diesel prices have been lower than the global average, particularly in 2016. External factors and fluctuations in the global energy market can impact these comparisons over time.
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Retail price components
As of July 2023, the average price of diesel fuel in Canada is around 2.19 Canadian dollars per litre, which is a significant increase from previous years. This price includes various components that collectively contribute to the final retail price that consumers pay at the pump.
The first component is the cost of crude oil, which is the base commodity for diesel and other petroleum products. The price of crude oil is determined by global supply and demand dynamics and can fluctuate due to various factors such as OPEC policies, geopolitical tensions, economic growth, and speculative trading. Crude oil prices are typically quoted in
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Historical diesel price data in Canada
As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per liter or USD 1.06 per liter. The average diesel price from July 13, 2015, to June 16, 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. These price variations can be influenced by various factors, including the type of gas, regional taxes, competition levels, sales volume, station type, and location.
The cost of diesel fuel in Canada has fluctuated over the years, with several factors influencing its pricing dynamics. One significant factor is the demand for and supply of crude oil, which drives price movements. When demand increases and supply decreases, diesel prices tend to rise. Additionally, price retail margins, which represent the difference between the pump price and acquisition cost, play a role in determining diesel prices in Canada.
Regional factors also come into play, with Ontario and Quebec accounting for approximately 55% of gasoline consumption in Canada. The western provinces account for about 36%, while the Atlantic provinces and the Territories consume the remaining 9%. These regional variations can influence the pricing dynamics within different parts of the country.
Taxation is another critical aspect affecting diesel prices in Canada. All gasoline sales are subject to the Goods and Services Tax (GST) and excise tax. However, the specific taxes levied can differ from province to province and even from region to region within a province. These taxes consistently impact the final price at the pump, contributing to the overall cost of diesel fuel for consumers.
The historical data shows that the Canadian government has occasionally intervened to regulate diesel prices. On the price chart, this intervention is indicated by a long flat line, suggesting that prices were fixed for a period to stabilize or control the market. These interventions can impact the overall historical price trends and are implemented to address specific economic or market conditions.
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Frequently asked questions
The average price of diesel fuel in Canada as of June 16, 2025, is CAD 1.45 per liter or USD 1.06 per liter.
The average price during that period was CAD 1.37 per liter, with a minimum of CAD 0.89 on February 08, 2016, and a maximum of CAD 2.30 on November 14, 2022.
The price of diesel fuel in Canada is influenced by various factors, including the cost of crude oil, refining costs, wholesale markets, retail markup, and taxes such as the federal carbon tax.
