5 reasons why gas prices are higher in Canada compared to the U.S.


WATCH: Calvin To breaks down the reasons why gas prices are higher in Canada than in the U.S.

According to GasBuddy.com, the average cost of regular fuel in Victoria was 141.2 cents per litre on Tuesday.

In Seattle, it’s significantly cheaper at 104.7 cents per litre (in Canadian currency).

GasBuddy.com’s Dan McTeague chalks up the difference to several reasons:

  1. The gas shortage on Vancouver Island and the Lower Mainland. “We don’t produce enough to meet our own needs,” McTeague said. “What little we have in Canada comes through the congested Trans-Mountain pipeline or otherwise the Burnaby-Chevron, now called Parkland, refinery, which has now been closed for about three weeks.”
  2. The lower Canadian dollar, which lost a couple cents against the U.S. dollar in recent weeks.
  3. The cost of shipping and storage.
  4. Different wholesale prices: 71 cents per litre in Anacortes versus 88 cents per litre in Victoria.
  5. Different taxes:
    • In Washington State:
      • 16.7 cent per litre state tax
      • 6.2 cent per litre federal tax
    • In Greater Victoria:
      • 3.5 cent per litre B.C. Transit tax
      • 6.75 cent per litre B.C. Transportation Financing Authority Tax
      • 7.75 cent per litre provincial tax
      • 6.67 cent per litre carbon tax
      • 10 cent per litre federal excise tax
      • 5 per cent GST

According to McTeague, 140 to 150 cents per litre is now the new normal.

“Victoria will inevitably become the second most expensive jurisdiction to buy fuel in North America, right behind Vancouver,” he said.

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