Home > You Asked Us > The difference in gasoline prices between Canada and the U.S.

The difference in gasoline prices between Canada and the U.S.

Any differences in gas prices between Canada and United States are because of taxes. Gasoline taxes vary by state and province and at each national level. When taxes are removed, Canadian and American gas prices are similar.

Need more information? See Taxes on Fuels.

Can't Canada set its own prices for gasoline?

The Government of Canada cannot by law regulate the price consumers pay for gasoline. Additionally, Canada does buy gasoline from other countries during the summer months to meet local demand, and has to pay the global market price. Retailers pass on these higher costs to consumers.

There are benefits to a market-based approach to fuel prices. Rising prices tell oil-producing countries to produce more, while telling consuming countries to use oil more efficiently and, where possible, to change to other fuel. This helps to ensure that sufficient supplies are available, preventing product outages.