Changes in the Canadian Diesel Industry and Their Impact on Trucking and Farming

How do changes in the Canadian diesel industry affect two of the most important users of diesel fuel—Canadian truckers and farmers?

Document Highlights 

Over the last decade, the number of diesel-producing refineries has been reduced by half; and distribution outlets have declined dramatically and been replaced by larger, more centralized facilities.

This report has tried to present a balanced view of the industry as well as the opinions of the trucking and farming communities.

Some of the study’s major observations include:

• the end price for diesel products is strongly affected by external factors;
• recent world crude oil prices is the major culprit behind the increase in diesel prices;
• cardlock systems for on-road diesel will expand across Canada;
• price transparency does not exist at the end-user level with diesel;
• discounts in the diesel industry are based on potential volume consumed;
• better fuel management by users will be required in the future;
• differences in credit terms between diesel resellers and end users are not advantageous to the reseller; and
• the ability to pass on higher fuel costs varies.