GasMizer

Why is gasoline and diesel cheaper in the US?

1) Competition: There are more retailers offering more competitive prices compared to the large gasoline retailers. These businesses rely heavily on strong customer service and loyalty. If a group of gasoline retailers targets a small independent retailer in a predatory pricing strategy and that business goes out of business as a result, that business can proceed with civil litigation to recover the losses associated to the business in accordance with U.S. Anti-Trust Laws. In Canada, if the same scenario were to occur, said business would have to litigate in criminal courts only. In criminal proceedings the burden of proof is often greater and many businesses cannot secure a conviction.

2) Taxes: Canadian drivers pay far more in tax compared to drivers in the U.S. The Federal tax in the U.S. is 18.4 cpg (4.8 cpl) In Canada the Federal Excise Tax is 10 cpl, with half of that representing GST. 14.7 cpl in Provincial Consumption Tax and 13% HST.   This is a tax on a tax on a tax.  The lowest state gasoline and diesel tax is 14 cpg (3.6 cpl) and the highest is 32.1 cpg (8.4 cpl)

It should be noted that gasoline/diesel taxes vary from state to state. For more information regarding U.S. state taxes please visit www.gaspricewatch.com

3) Surcharges: In Canada, our major refiner/marketers at times charge obscene wholesale surcharges to their fuel. Since there is no clear accounting of retail profits and refining/marketing profits it is hard to tell what percentage of those profits are derived from this surcharge.

 4) Currency:  Our dollar now sits above parity with the US dollar.

  For more infomation regarding gasoline prices in Ontario and Canada, please visit www.tomorrowsgaspricetoday.com