I did the math on this a while back and many have enjoyed it...so here is an update for Easter Sunday:
Since there are 3.785 litres per U.S. gallon (forget about Canadian gallons as they are irrelevant in this context), and gas is about $1.20/litre in Canada, and the Canadian Dollar is at 0.98 U.S., we can calculate the price of gas in Canada at about $4.45 US/gallon. In the U.S., the average price is about $3.29.
Another way to describe it would be that gas in the US is currently selling for about 87.8 Canadian cents/litre. This is calculated with the US dollar at 1.01 Canadian and recognizing that 1 litre equals .2642 gallons.
Sunday, March 23, 2008
U.S. - Canada Gas Price Update
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5 comments:
So would it be worth a Canadian to drive over the border to fill up?
Well naturally, that depends. If you're crossing at a border that has a bridge toll of $3 each way like Buffalo/Fort Erie, and you're lined up idling for a few hours, and your tank is not empty when you cross, the answer is probably "no". If you cross a border with no toll, there's no line up and your tank is empty, you're going to get a straight savings of at least $20, more if you have a bigger size tank.
Thanks for the answer. I wasn't aware of the tolls. But here is another question. Canada is the #1importer of oil into the U.S. When you look at all the other oil importers, in their homeland gasoline is relatively inexpensive. How come Canadians are paying, what appears to be, a disproportionate amount for a gallon of fuel?
I don't pretend to be an oil and gas expert but I can think of at least two big reasons. One, Canada is a high cost producer. The oil and gas we have in the tarsands is very expensive to extract. On top of that, we have distribution costs that are very expensive. Getting the oil from the source, to the market, is highly inefficient in Canada. At $100/barrel obviously it is worthwhile but for many years there was little investment there.
The other obvious reason is taxes. Depending on where you live, the price of gas is more than 30% tax, mostly federal.
Two comments:
Just filled up my car in Toronto(1.14.6 per litre)and it cost $68.61. Two weeks ago I filled up in Rochester NY, turns out it was the same # of litre/gallons and it cost $53.61 (the Cdn $ was more or less at par). Canadian fill up was $15 more per tank.
If I remember my history way back in the 60s & 70s the federal and Alberta government agreed that the province would control their oil and be able to sell it at world prices within Canada and that the feds could tax it. Without world prices it was feared there would be less interest in exploring and developing it
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