Low Oil prices are hammering Canada’s resource economy, but drivers are not seeing the relief at the pumps. This notion gasoline prices in Canada need to be hiked to be competitive with the US markets to compensate for the low loonie and that Canadians would be paying far less per litre if the dollar was at par is really hard to accept.
In Sarnia, Ontario, where major oil refineries are located, gas prices are at $0.875 cents/litre. A quick drive over the border to Port Huron, Michigan gas prices are $1.61 US Gallon. The US gallon is used in the United States and is equal to exactly 231 cubic inches or 3.785411784 liters. For example, to fill up my 100 Litre tank it would cost me $87.50 Can. This converted in US gallons is 26.41 and would cost me $42.50 US.
With the loonie bobbling above or below 70 cents in recent days the exchange would bring it to a total of $55.27 Can. This is a difference of $32.23 and with my toll being a total $6.00 Can. round trip, I end up saving $26.00. Depending on how much you drive this is a huge savings overtime.