GAS FACTS
Understanding Gas Prices

Fluctuating gas prices cause confusion among consumers. Breaking down the price-per-litre is a good way of illustrating what the total price is comprised of.

For Pioneer Petroleums, as an independent gasoline retailer in the marketplace, the crude/refinery or wholesale margins do not form part of our revenue.

Pioneer derives its income solely from the gross retail margin of 5-6 cents per litre. Out of this amount comes operating expenses, credit card fees, fuel delivery, maintenance, agents' commissions and wages, hydro, the cost of loyalty programs, overhead, financing and other expenses. After these expenses, we are left with a very slim net profit retail margin.

Independents like Pioneer must purchase their product from the major oil companies - those who own and operate refineries - and at the same time compete with them across the street for the retail margin.

Gasoline retail margins are tight and change with market conditions. We must, therefore, be very aggressive in our operations to stay competitive. Consumers should know that there is no 'gouging' or inflated margin built into our prices.

We do all we can to stay competitive.

5% Gross Retail Margin (down-stream) = 5-6¢/litre

• 3% represents cost
• 2% represents profit

• Provincial (14.7¢)
• Federal (10.0¢) Road Taxes
• 5% GST on total retail price per litre, or 5.0¢/litre on a 100.0¢ litre of regular gasoline.

Centre for Energy

The Centre for Energy provides information on all aspects of the Canadian Energy System. The portal was created to meet a growing demand for balanced, credible information about the Canadian energy system and energy-related issues. Explore how Canadian energy is produced and used and learn how each energy source is an integral part of the Canadian energy mix by visiting the Centre for Energy website.

Based on gas price at $1.00/litre.



What is Octane?

When you drive up to the pumps, you can see that Pioneer offers three grades of gasolines - Silver (87 Octane), Gold (89 Octane) and Platinum 91 (91 Octane).

The Octane rating of gasoline is a measure of the fuel's ability to resist engine knock, or ping. Engine knock is caused when the air-fuel mix in the cylinders of your car's engine explodes prior to the sparkplug firing, rather than burning evenly across the cylinder when the sparkplug does fire.

Optimum performance and fuel economy are achieved when the Octane rating of the gasoline is appropriate for the engine of your vehicle. Check your owner's manual to determine the Octane rating most suitable for your vehicle.
Octane Tips

• As your vehicle ages, the octane requirement tends to increase because of engine deposits.
• Octane requirements also tend to increase on hot days and when barometric pressure is high.
• Your engine's octane requirements decrease at higher altitudes because of the decrease in barometric pressure.
• Engine performance in modern vehicles may be enhanced by using higher-octane fuels where called for in your owners manual. Computerized engine systems will slow engine timing if octane levels are not high enough to eliminate knock. Using a higher-octane fuel, in vehicles that call for higher octane, speeds up the timing, enhancing performance in vehicles that call for higher octane