Blogs & Comment

Canada: Land of more oil and higher gas prices

The fact that Canada is self-sufficient for oil, at least on a production basis, has not been reflected in the prices at our gas pumps.

In June of this year, Canada imported about 16.5 million barrels or 36% of total crude oil receipts. Most of this was for markets east of Ottawa, due to the lack of distribution facilities. In the same period, the United States imported over four times this amount, almost 76 million barrels of Canadian oil. The fact that Canada is self-sufficient for oil, at least on a production basis, has not been reflected in the prices at our gas pumps. The chart below was adapted from information provided by www.gasbuddy.com and shows that the average price of gasoline is between 26% and 36% higher here than it is south of the border. The one word answer for the difference is taxes, which are on average much higher here than they are in the U.S.

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