There are several factors that can contribute to the difference in gas prices between Halifax and Ottawa:
- Distance from refineries: Halifax is located further away from major refineries compared to Ottawa. This means that it costs more to transport gas to Halifax, resulting in higher prices.
- Competition: Ottawa has a higher number of gas stations compared to Halifax, which creates more competition and can drive prices down.
- Taxes: The taxes on gas vary between provinces, with Nova Scotia having higher taxes compared to Ontario. This can contribute to the higher gas prices in Halifax.
- Demand: The demand for gas in Halifax may be higher compared to Ottawa, which can also drive prices up.
- Transportation costs: The cost of transporting gas from the refineries to the gas stations can also impact the final price. If the transportation costs are higher in Halifax, it can result in higher gas prices.
- Market forces: Gas prices are also affected by global market forces, such as changes in crude oil prices and supply and demand. These factors can vary between different regions, resulting in different gas prices.
Any or all of these factors can contribute to price differtences between any two centers. Some cities have other extenuating circumstances as well.