Key Takeaways
#1. American gas is cheaper than Canadian gas even with the exchange rate
#2. Fuel prices are not static and will change without notice
#3. It is best to exchange your money before you leave the country
It is a gamble
In the old days back when Canada was still serving gas by the gallon, it was tempting for us to cross the border and fill up on gas in America. The gas prices were cheaper even with the then-current exchange rate.
But knowing the gas prices in America was easy for those of us who lived on the border. The American gas stations had large signs advertising their prices that could be seen for miles.
But what if a person traveled a long distance? They would be at a disadvantage and not know the gas prices until they crossed the border. This is where we come in. We do the research for you so that you can know where is the best country to buy gas.
It’s by the liter, not gallon
Buying gas in another country is not always easy. We had to convert to liters to see if buying gas in Canada would be cheaper than buying it before we left America. Canada sells its gas by the liter and 1 U.S. gallon equals 3.8 liters approx.
When we made that discovery we also learned that we had to multiply the gas prices in Canada by 4 to get an accurate measurement to make the comparison.
The gas prices in the western and mid-western border states on average was $3.20 US per gallon. In Canada, the average price near the border was roughly $1.79 CDN.
When we multiplied the $1.79 by 4 we came to the total of $7.16 CDN per gallon. That is more than you had to pay just before crossing the border.
The exchange rate comes in handy
However, when we factored in the exchange rate, the cost of gas in Canada was lowered to $1.27 per liter. Currently, the American dollar is worth $1.35 to $1 CDN.
With this rate of exchange, the price of Canadian gas was reduced to $5.08 per gallon. While more economical and a benefit if we traveled a long distance in Canada, this price was still not as attractive as the gas price in those border states.
We would still save money but not as much as we would if we filled our tank on the American side of the border. Since we were driving a Class A RV, it just made more sense to fill the fuel tank before entering Canada. The savings was huge.
Diesel drivers get a break as well
Not everyone drives a gas-powered RV like us. But we checked the diesel prices in Canada and saw that the prices in that country were about the same as the gas prices.
Currently one can buy diesel in Canada for $1.76 per liter which translates into $1.30 with the exchange rate. Currently, the price of diesel in America averages about $4.00 per gallon. When we multiplied $1.30 by 4 we reached $5.20 per gallon for diesel (including the exchange rate).
That means when we filled up at a border city, we were able to save roughly $1.20 per gallon, and multiply that by 100 gallons, we saved $120 per tank. That is a big saving that allowed some cushion in case anything broke down during our Canadian travels.
The price of gas fluctuates
This is one of the drawbacks of our Canadian trip. We could not be sure if the above numbers would hold and Canadian gas prices have been known to go up by 10 cents per liter overnight.
One of the best tips we received for saving on fuel was to find out when the country raised or lowered its gas prices. Then buy your fuel the day before the prices go up or the day after they go down.
For Canada, they change their prices on Thursdays so we planned our gas buying times for Wednesdays or Fridays. Being prepared and doing a little research helped us save a lot on our Canadian RV vacation.
Other gas savings tips we used
Knowing when and where to buy gas is just one tip that we came across to help us save on fuel and make our trip more economical. Other tips that we used are:
– Even if your tank is not empty, fill it up on those days when the prices are favorable
– Buy regular fuel- save by not buying premium fuel
– Join a membership club- These clubs will help you save money even in Canada, just make sure to verify that those discounts apply in that country
– Use a gas app- These apps will track the gas prices for us and help us find the cheapest gas in our area
– open the windows and stop using the air conditioner- This saves a little on fuel
– lighten the load- take out everything you absolutely will not need and leave it at home. The lighter the RV the better the fuel mileage
Use a gas calculator
One of the tricks we found that helped us a lot, was to find a gas calculator on the Internet. These websites helped us track the fuel costs state by state as well as province by province.
By finding out where the cheapest gas was along the border we could change our entry point to save on the fuel costs. Being flexible on our vacation helped us stay within our budget.
We had extra money just in case an emergency arose.
Not the last word
Fuel prices in America will be a lot cheaper than the cost of fuel in Canada. Part of the reason for that discrepancy is the fact that the American dollar is a lot stronger than the Canadian one.
Even if you miss out on some of those border state prices, your fuel expenses will still be less when you fill up in Canada. The trick is to make sure to exchange American dollars for Canadian ones before leaving the country.
You will get a better exchange rate in America than you would in Canada.