Canada Diesel Fuel Market

Canada Diesel Fuel Market Insights Forecasts to 2035

• The market for Diesel Fuel was estimated to be worth USD 26.9 Billion in 2024.
• The market is going to expand at a CAGR of 1.62 % between 2025 and 2035.
• The Canada Diesel Fuel market is anticipated to reach USD 32.10 Billion by 2035.

According to a research report published by Decision Advisor & Consulting, The Canada diesel fuel Market Size is anticipated to Hold USD 32.10 Billion by 2035, growing at a CAGR of 1.62 % from 2025 to 2035. The Canada diesel fuel market is poised for steady growth, driven by rising transportation needs, expanding industrial activities, and increasing demand from construction and logistics sectors, alongside ongoing investments in fuel efficiency and cleaner diesel technologies.

Market Overview

The Canada diesel fuel market is experiencing consistent growth as diesel continues to be a critical energy source for transportation, construction, mining, agriculture, and industrial operations. Demand remains strong due to Canada’s extensive logistics network, cold climate, and reliance on heavy-duty vehicles and machinery that require high-performance fuel. At the same time, the market is evolving as the country pursues cleaner and more sustainable energy solutions. Refiners and fuel distributors are increasingly focusing on low-sulfur diesel, renewable diesel blends, and advanced emission-control technologies to meet tightening environmental regulations. Additionally, ongoing infrastructure development, expansion of cross-border freight movement, and rising commercial activity continue to support diesel consumption, ensuring its relevance in Canada’s energy mix during the transition to greener alternatives.

Report Coverage

This research report categorizes the market for the Canada diesel fuel market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada diesel fuel market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada diesel fuel market.

Driving Factors

The Canada diesel fuel market is driven by strong demand from transportation, construction, mining, and agriculture sectors, all of which rely heavily on diesel-powered machinery and vehicles. Expanding infrastructure projects and increasing freight movement across provinces further boost consumption. The shift toward ultra-low-sulfur diesel and renewable diesel blends also supports market growth by aligning with environmental regulations. Additionally, Canada’s cold climate increases dependence on diesel for reliable engine performance, while ongoing industrial activity and commercial logistics continue to reinforce steady demand.

Restraining Factors

The Canada diesel fuel market faces restraints due to rising adoption of electric vehicles, stringent emission regulations, and growing investments in cleaner energy alternatives, which collectively reduce long-term diesel dependency.

Market Segmentation

The Canada diesel fuel market share is classified into product and application.

• The petroleum diesel segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Canada diesel fuel market is segmented by product into petroleum diesel, biodiesel, and renewable diesel. Among these, the petroleum diesel segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Petroleum diesel held a major share in 2024 due to its strong demand in transportation, logistics, and industrial sectors supported by an established supply network.

• The automotive segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Canada diesel fuel market is segmented by application into automotive, construction, mining, agriculture, and others. Among these, the automotive segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Driven by widespread diesel use in commercial vehicles, freight trucks, and public transport fleets. It is also expected to grow at a notable CAGR, supported by continued transportation demand, long-haul logistics expansion, and the slow transition pace toward full electrification in heavy-duty mobility.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada diesel fuel market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Canadian Clean Fuels Corporation
• Cenovus Energy Inc.
• Gibson Energy Inc.
• Greenergy Canada
• Husky Energy (Cenovus Energy)
• Imperial Oil Ltd. (Esso)
• Irving Oil Ltd.
• Parkland Corporation
• Shell Canada Ltd.
• Suncor Energy Inc.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2025, Suncor Energy Inc. announced the expansion of diesel production and renewable fuel blending capacity at its Edmonton Refinery in Alberta, reinforcing Canada’s clean fuel supply chain. The upgrade adds renewable diesel capabilities and boosts ultra-low-sulfur diesel output to meet rising demand from transportation, mining, and industrial sectors.

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. Decision Advisor has segmented the Canada diesel fuel market based on the following segments:

• Petroleum Diesel
• Biodiesel
• Renewable Diesel

Canada Diesel Fuel Market, By Application

• Automotive
• Construction
• Mining
• Agriculture
• Others

FAQ’s

Q: What is the Canada diesel fuel market size?

A: Canada diesel fuel market size is expected to grow from USD 26.9 Billion in 2024 to USD 32.10 Billion by 2035, growing at a CAGR of 1.62 % during the forecast period 2025-2035. 

Q: What are the key growth drivers of the market?

A: The Canada diesel fuel market is driven by strong demand from transportation, construction, mining, and agriculture sectors, all of which rely heavily on diesel-powered machinery and vehicles.

Q: What factors restrain the Canada diesel fuel market?

A: The Canada diesel fuel market faces restraints due to rising adoption of electric vehicles, stringent emission regulations, and growing investments in cleaner energy alternatives.

Q: How is the market segmented by product?

A: The market is segmented into petroleum diesel, biodiesel, and renewable diesel.

Q: Who are the key players in the Canada diesel fuel market?

A: Key companies include Canadian Clean Fuels Corporation, Cenovus Energy Inc., Gibson Energy Inc., Greenergy Canada, Husky Energy (Cenovus Energy), Imperial Oil Ltd. (Esso), Irving Oil Ltd., Parkland Corporation, Shell Canada Ltd., and Suncor Energy Inc.

Q: Who are the target audiences for this market report?

A: The report targets market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs)