Why Canadians pay more at the pumps

With the long weekend around the corner, we can likely bank on a spike in gas prices. Across the Golden Horseshoe today, the average price is about $1.42 a litre. That’s high enough to send drivers across the border.

Glen Mcdonald lives in Burlington and is on his way to Pennsylvania. But waited till he crossed the border to fill up.

“Today, I’m paying $47.40,” he said.

In Niagara Falls, New York, gas is $3.89 a gallon or $1.02 a litre. In Niagara Falls, Ontario, $1.42. How much does Glen McDonald think he’s saving buying gas in the U.S.?

“Right now, about $20 on a tank,” he said. “We are getting hosed at the pumps in Ontario.”

Dan McTeague, Canada’s gas crusader, says it has more to do with competition and quality of the crude.

“Competition always makes sure that south of the border they get a much better deal, and of course the competition thrives there because they have effective antitrust legislation that prevents big oil companies from smothering small, independent businesses,” he said.

And then there are the taxes.

For every gallon you put in the tank in New York State you pay about 50 cents in taxes in total. In Ontario, it’s about 40 cents a litre.

You also have to consider the exchange rate. It’s hovering about 10 per cent. That means $1.02 a litre of gas is really $1.12 Canadian.