Why Are We Paying More For Gas Than Americans?

[Big Guy]

I was watching the CTV news this morning and there was a report on a comparison of gas prices;

The gas prices are fairly similar across Canada; BC - $1.44/L, Nova Scotia - $1.49/L, Ontario - $136/L and Quebec - $1.45/L.

It got interesting when comparing border cities;

Toronto Ont - $1.38/L or $69.00 for a fill-up.

Buffalo NY - $1.09/L or $54.50 for a fill-up.

Vancouver BC - $1.51/L or $75.50 for a fill-up.

Bellingham, WA - $1.12/L or $56.00 for a fill-up.

The average Canadian pays about $500 a year more for gas than your average American. Economists claim that is a reason why we have less to spend on other products thereby creating a negative impact on our economy.

Why are Canadians paying that much more for gas than Americans?

The only cite I can give is to watch the CTV news to-day. If anyone can find an internet site then I would appreciate you sharing it.

[monty16]

I would suggest that you need to factor in Vancouver city's surcharge first before making any comparisons. I don't know for sure but other big cities could be doing the same thing. And then, besides that you need to take taxes into consideration because we tax gasoline to provide social services the US goes without. (taxation overall remains about on par) (before any US apologists go off)

Beware of CTV news, the owners of that station hate Canada's social policies and make up stories to discredit us. Their original story most likely came from the Fraser Institute which has already been totally discredited as a rabid right mouthpiece.

[guyser]

Beware of CTV news, the owners of that station hate Canada's social policies and make up stories to discredit us. Their original story most likely came from the Fraser Institute which has already been totally discredited as a rabid right mouthpiece.

Been debating whether or not you are off your rocker.

This post confirmed it.

Ta Ta

[dre]

The reason we are paying more for gas than the US is because our government actually pays its bills for the most part. We fund our government with tax dollars so we have higher taxes in some areas. One of those areas is gasoline. In the US they fund more of their government by selling treasury instruments... bills, bonds, etc. So they dont need to collect as much in taxes.

Canadians pay about 33% in combined taxes on average on the price of fuel, and Americans pay about 11%

Regional price variations within Canada happen for the same reason...

Vancouver’s high prices are due almost exclusively to the high gas taxes in this city, including the 15 cents a litre which goes to TransLink.

So basically US consumers are passing off the real cost of fuel (and by extension pretty much everything else) onto future generations, by providing all kinds of these indirect subsidies backed by selling treasuries instruments (bonds, bills, notes, etc). In a way its a form of socialism that has future Americans subsidizing Americans today.

http://blogs.marketwatch.com/canada/2011/03/09/canada-gas-prices-higher-than-u-s-because-of-higher-taxes/

Edited May 23, 2014 by dre

[Michael Hardner]

Been debating whether or not you are off your rocker.

This post confirmed it.

Ta Ta

Guyser - that would be an insult. Please don't, thanks.

[monty16]

The reason we are paying more for gas than the US is because our government actually pays its bills for the most part. We fund our government with tax dollars so we have higher taxes in some areas. One of those areas is gasoline. In the US they fund more of their government by selling treasury instruments... bills, bonds, etc. So they dont need to collect as much in taxes.

Regional price variations within Canada happen for the same reason...

So basically US consumers are passing off the real cost of fuel (and by extension pretty much everything else) onto future generations, by providing all kinds of these indirect subsidies backed by selling treasuries instruments (bonds, bills, notes, etc). In a way its a form of socialism that has future Americans subsidizing Americans today.

Very well stated but beware of the counter spin they're going to try to use. So before they do, I'll just state once again that overall taxation is roughly equal in both countries.

Edited May 23, 2014 by monty16

[guyser]

Guyser - that would be an insult. Please don't, thanks.

Actually I was insulted to have to read that....thanks

[overthere]

one word : taxes

It is most obvious to me travelling to Yukon, a remote place where gasoline is cheaper than it is in BC. Ironically, almost all the gas in YT is trucked from BC.

The prices in the first post are not indicative of prices across Canada. This morning, regulsar cost 112.9/liter in most stations around Edmonton, except at discount places like Costco where they were $1.06 or $1.07. Word is out that most stations are bumping that to $1.26/liter today. Larceny.

[Big Guy]

The prices in the first post are not indicative of prices across Canada. This morning, regulsar cost 112.9/liter in most stations around Edmonton, except at discount places like Costco where they were $1.06 or $1.07. Word is out that most stations are bumping that to $1.26/liter today. Larceny.

You may be correct but -

Some interesting daily and varying gas price statistics can be found at;

http://www.gasbuddy.com/gb_can_gastemperaturemap.aspx

and;

http://www.gasbuddy.com/GB_Price_List.aspx

[Boges]

Tax, Tax and more Tax.

If Kathleen Wynne gets a majority in Ontario we'll pay even more tax for gas.

Then again in cities like Montreal and Vancouver, don't they pay like $1.50/litre?

Must suck!

[WestCoastRunner]

Beware of CTV news, the owners of that station hate Canada's social policies and make up stories to discredit us. Their original story most likely came from the Fraser Institute which has already been totally discredited as a rabid right mouthpiece.

Do you have anything to back this up? This is absolutely ludicrous!

[-TSS-]

Are those Canadian dollars the prices you are quoting? The usual price per litre for petrol in Finland is 1.50-1.60 euros which is at the current rate 2.24 CAD. If North-Americans were made to pay that much for petrol there would be a revolt.

[Boges]

Are those Canadian dollars the prices you are quoting? The usual price per litre for petrol in Finland is 1.50-1.60 euros which is at the current rate 2.24 CAD. If North-Americans were made to pay that much for petrol there would be a revolt.

Yeah that would be tough to take. In Ontario if it gets above $1.40/litre people tend to scale back their transportation spending.

Consider that Canada is a much larger country and those that drive often have to drive farther.

[Deductive_Dude]

Does Supply and Demand ever play a major factor in Gas prices? I don't feel it has the upper hand in determining what you pay at the pump !

[eyeball]

Are those Canadian dollars the prices you are quoting? The usual price per litre for petrol in Finland is 1.50-1.60 euros which is at the current rate 2.24 CAD. If North-Americans were made to pay that much for petrol there would be a revolt.

How much do oil company executives in Finland make compared to execs in Canada?