Montreal Motorists Continue to Face Elevated Gas Prices Despite Provincial Decline
A recent annual report from CAA-Quebec has shed light on the persistent financial burden faced by Montreal drivers at the pump. While the province of Quebec experienced a notable decrease in gasoline prices overall, the city of Montreal saw significantly smaller reductions, maintaining its position as one of Canada's most expensive markets for fuel.
Provincial Decrease Versus Montreal's Minimal Relief
The comprehensive analysis, which examined daily gas prices throughout 2025, revealed that Quebec's average gasoline price decreased by 5.8 percent compared to 2024. This provincial decline was primarily attributed to falling crude oil and refined gasoline prices in the broader market. However, the benefits of this downward trend were not distributed evenly across Quebec's urban centers.
Montreal motorists witnessed only a modest 1.2 percent reduction in retail markups at gas stations, while other regions enjoyed substantially greater savings. Quebec City experienced a remarkable 34.5 percent decrease in markups, and Sherbrooke saw a 13.8 percent reduction. This disparity highlights the unique market dynamics affecting Montreal's fuel pricing structure.
Tax Burden and Price Extremes
The report confirmed Montreal's continued distinction as having the highest proportion of tax in gasoline prices nationwide, with taxes comprising 33.4 percent of the cost per litre of regular gasoline. This tax structure remains in place while other provinces eliminated the federal carbon tax in April 2025, as Quebec maintains its independently imposed cap and trade system.
Throughout 2025, Montreal drivers experienced significant price fluctuations, paying the single highest price recorded in Quebec at $169.9 per litre on September 4th, followed by the lowest price of $136.9 per litre during the December 29-30 period. These extremes demonstrate the volatility that characterizes Montreal's fuel market despite the overall provincial decrease.
Comparative Analysis and Consumer Impact
The CAA-Quebec report provides valuable context for understanding regional variations in fuel pricing. The minimal markup reduction in Montreal, contrasted with substantial decreases in other Quebec cities, suggests that competitive pressures and market conditions differ significantly across the province. This analysis comes at a time when consumers remain particularly sensitive to transportation costs amid broader economic pressures.
As Quebec continues to navigate its unique approach to carbon pricing through the cap and trade system, Montreal motorists find themselves bearing a disproportionate share of the tax burden compared to drivers in other Canadian provinces. The report's findings underscore the complex interplay between global oil markets, provincial policies, and local retail practices that ultimately determine what consumers pay at the pump.
