The Eastern Canada road transportation fuel market size is expected to reach US$ 50,160.30 million by 2031 from US$ 40,909.03 million in 2024. The market is estimated to register a CAGR of 3.14% during 2025–2031. The growing investments in the transportation industry are likely to bring new trends to the market in the coming years.
Transportation fuels play an important role in Canada's economy. The key stakeholders in the Eastern Canada transportation fuel market ecosystem include refineries, transportation fuel distributors and retailers, and end users. Key end users include passenger and freight transport vehicles. Road transportation is categorized into the transportation of goods and the transportation of people. Transportation fuels are energy sources that power internal combustion engines used in various modes of transport. The transportation sector includes road (including cars, trucks, and buses), rail, sea, and air transport used for the movement of people and goods. The transportation sector accounts for nearly 20% of energy consumption and is the largest consumer of petroleum in Canada. Transportation fuels are the result of refining processes that convert extracted energy resources into usable products. Liquid fuels vary depending on the chemical characteristics of the primary fuel source. Currently, more than 80% of transportation fuels are derived from petroleum. Ontario and Quebec significantly influence the road transportation fuel market in Eastern Canada due to the extensive presence of road transportation fuel consumers in these provinces.
The rise in production and sales of vehicles in Canada drives the road transportation fuel market growth. In addition, the increase in fuel sales for road transportation vehicles propels the Eastern Canada road transportation market growth. Moreover, government initiatives toward the promotion of sustainable fuels in road transportation applications are expected to propel the market growth from 2025 to 2031. Furthermore, the growing investment in the development of hydrogen fueling infrastructure is projected to be the key trend in the market during the forecast period.
Key industries driving the Eastern Canada road transportation fuel market include transportation and logistics, construction, mining, oil & gas, healthcare, and e-commerce. As per the Canadian Fuels Association, yearly, around 200 million liters of fuel are pumped into vehicle fuel tanks across Canada. Canada has 16 petroleum refineries, 75 fuel distribution terminals, and more than 12,000 retail and commercial sites. In addition, the government of Canada, along with state governments, aimed at the promotion of alternative or sustainable fuels for achieving Canada's future fuel mix and energy transition targets. The increasing preference of Canadian consumers for larger vehicles has a significant impact on the demand for gasoline and diesel, which, in turn, is projected to drive the market growth in Canada.
End users in the Eastern Canada road transportation fuel market include light and heavy vehicles. These vehicles are used in passenger and freight transportation across the country. The increase in new vehicle registrations in the region is anticipated to drive the demand for road transportation fuels in the coming years. The increase in trade activities through road transportation in Eastern Canada, driven by the growth of logistics, e-commerce, manufacturing, and construction sectors, is expected to boost the demand for road transportation fuels from 2025 to 2031.
In recent years, Canada has experienced a significant increase in trucking fuel sales. This rise can be attributed to various factors that reflect both the economic landscape and shifting consumer preferences. It highlights the broader dynamics within the nation's transportation sector, which plays a vital role in the economy. As Canada continues to recover from the impacts of the COVID-19 pandemic, there has been a noticeable uptick in economic activity, leading to higher fuel demand. The resumption of business activities, coupled with increased consumer travel, has led to higher fuel consumption, particularly gasoline and diesel. Furthermore, increased vehicle registrations, including passenger cars, trucks, and commercial vehicles, have contributed to the growth in fuel sales. As Canadians travel and conduct business, the demand for fuels used in road transportation has also soared.
As the world is increasing its efforts to achieve net-zero emissions (NZE) by 2050, there will be a major shift toward carbon reduction and the production of zero-emission fuels. Canada is positioned to be the producer and consumer of these fuels that consumers are seeking now and will increasingly seek in the future. The Clean Fuels Regulation increases incentives for the development and adoption of sustainable fuels, technologies, and processes. The goal of the Clean Fuels Regulation is to significantly reduce pollution by making clean fuels cleaner over time. The Clean Fuels Regulation requires suppliers of liquid fossil fuels (gasoline and diesel) to gradually reduce the carbon intensity (or amount of pollution) of the fuels they produce and sell for utilization in Canada. This will translate into a reduction of nearly 15% (below 2016 levels) in the carbon emission intensity of gasoline fuel and diesel used in Canada by 2030. As per the International Energy Agency (IEA) and Advanced Biofuels Canada, the total production of biodiesel increased from 431 million liters in 2021 to 496 million liters in 2023. In addition, biodiesel consumption increased from 412 million liters in 2021 to 525 million liters. Hence, government initiatives toward the promotion of sustainable fuels are anticipated to create opportunities for the key players operating in the Eastern Canada road transportation fuel market during the forecast period.
Key segments that contributed to the derivation of the Eastern Canada road transportation fuel market analysis are type and vehicle type.
The Eastern Canada road transportation fuel market is segmented into four major provinces: Ontario, Quebec, the Maritimes, and others. Ontario dominated the market in 2024, followed by Quebec and the Maritimes.
As per the insights from Statistics Canada, new passenger car vehicle registrations decreased from 93,867 units in 2021 to 67,788 units in 2023. In addition, gasoline vehicle registrations decreased from 295,288 units in 2022 to 288,324 units in 2024, and diesel vehicle sales increased from 15,278 units in 2022 to 15,860 units in 2024. The decrease in gasoline vehicle sales can be attributed to the increasing demand and government initiatives toward the adoption of zero-emission vehicles in the region. For instance, the sales of all types of zero-emission vehicles in Quebec increased from 45,881 units in 2022 to 147,507 units in 2024, owing to the rise in government initiatives toward the adoption of zero-emission vehicles in Quebec. In December 2024, Quebec adopted the regulation banning the sale of all new light-duty combustion engine vehicles in Quebec by 2035, achieving the goal of 100% zero-emission vehicles by 2035. Additionally, net sales of liquefied petroleum gas (LPG) used in road motor vehicles rose from 74.84 million liters in 2021 to 118.2 million liters in 2023. Hence, the rise in fuel consumption from the road transportation sector in Quebec is expected to drive market growth from 2025 to 2031.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 40,909.03 Million |
| Market Size by 2031 | US$ 50,160.30 Million |
| Global CAGR (2025 - 2031) | 3.14% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | Eastern Canada
|
| Market leaders and key company profiles |
The Eastern Canada road transportation fuel market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Eastern Canada road transportation fuel market are listed below:
The "Eastern Canada Road Transportation Fuel Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Eastern Canada Road Transportation Fuel Market
Rise in sales of new vehicles and increase in fuel sales for road transportation vehicles are the major factors that propel the Eastern Canada road transportation fuel market.
The Eastern Canada road transportation fuel market is expected to reach US$ 50.16 billion by 2031.
Growing investment in development of hydrogen fueling infrastructure to play a significant role in the Eastern Canada road transportation fuel market in the coming years.
The Eastern Canada road transportation fuel market is estimated to register a CAGR of 3.14% during the forecast period 2025–2031.
The key players holding majority shares in the Eastern Canada road transportation fuel market are Chevron Oronite Co LLC, Suncor Energy Inc, Valero Energy Corp, Equinor ASA, Exxon Mobil Corp, CNOOC Ltd, TotalEnergies SE, Parkland Corp, Irving Oil Co Ltd, Cenovus Energy Inc, Imperial Oil Ltd, and Shell Plc.
Gasoline segment dominated the Eastern Canada road transportation fuel market in 2024.