Because of the high prices in Canada, buying gas in the U.S. can save you a lot of money – especially if you're able to bring some home in jerry cans or combine the trip with a grocery run.
The lower taxes in the U.S. can make it very tempting to fill up there, but you'll also want to consider things like border waits, driving time, and currency conversion.
Here's an analysis of what you can save if you pump your gas south of the border.
Key Takeaways
- Gas is almost always cheaper in the U.S. than it is in Canada.
- The reason for the price difference is that the U.S. charges less in taxes for gas.
- You can save more money by bringing jerry cans, buying groceries, and having the right credit card.
Is gas cheaper in Canada or the U.S.?
Gas is cheaper in the United States because of their lower fuel taxes overall. The price of gasoline before taxes is actually quite similar, but both federal and provincial taxation is higher.
Between provinces, different taxation laws mean that prices can vary widely across the country. For instance, in B.C., gas prices are among the highest, and just one province over in Alberta, it's still relatively cheap. This also takes the availability of oil in the provinces into account.
But in terms of average prices at the time of this writing, Canadians are paying $1.632 per litre while Americans are paying $3.59 per gallon ($1.29 per litre).
If you live in a province where gas is very expensive (like me in B.C.), you'll see some dramatic savings.
Cross border gas savings example
Here's an example of how to calculate the savings you can get when buying gas in the States.
For simplicity's sake, my car takes regular (87 octane) fuel and holds 60 litres of gas. The last time I went, the needle was heart-poundingly close to the "E", so we can assume I barely had anything left in the tank.
Gas on that day was $2.00 per litre. In the U.S., I paid $4.55 per gallon ($1.63 per litre). So that works out to a savings of 37¢ per litre. That's a whopping $22.20 saved in the car alone.
One tip that I'll go over later is that I brought jerry cans with me. Since I brought 3, I was able to essentially get 2 tank's worth of fuel, doubling my savings to $44.40 on the trip. Even though I'm less than 40 minutes away from the gas station (including wait time when crossing), having those jerry cans saves me from making an extra trip.
Remember to calculate the cost of driving
Now, your mileage may vary. One other thing to keep in mind is the distance and time required to drive down there.
My car is not very efficient, so at best, it gets 9L/100km. With a 38 km drive (doubled since I have to get back home), I'd have to pay $11.15 for the trip. If you save $22.20, you'll lose about half of the savings on the drive itself. So again, it's best with some jerry cans (or in my case, a more fuel-efficient car than the second-hand van I drive).
Tips to save more money when crossing the border to buy gas
Here are some extra tips from a veteran like me who happens to live near the border and goes across to get gas often.
1. Make sure the trip is worth it
If you're hours away from the border, don't bother since the savings you math out are probably going to be outweighed by the distance you drive and the time you spend. Buying gas in the U.S. as a Canadian is usually only worth it if you are close to the border.
2. Bring some jerry cans
To further justify the trip, bring some jerry cans that can be filled up with more gas so you can fill up again at home at the reduced cost without having to make a second trip. The larger jerry cans are usually around 20 litres, so if you bring 3, you'll be getting a bonus tank or more for your troubles.
Two things to keep in mind when using jerry cans
- You need to declare any gas bought that isn't pumped directly into your car. The border guards are usually pretty lax since they see Canadians crossing for gas all the time, but the last thing you want is to be flagged for the rest of your life. The most you can bring back is 150 kg, or roughly 6 jerry cans.
- Safety always comes first. Ensure the jerry cans are fully sealed, secured, and are positioned in a way that they don't tip over in the event of heavy braking or a hard turn. Even if you don't blow up your car in a fiery wreck, getting gas fumes out of your car following a spill can take weeks (or be nearly impossible).
3. Don't buy gas right at the border
Do your research on the border town before leaving. Scout out all the gas stations for the best price. For me, I know the gas station right across the border is not the cheapest. Just a few blocks away, there is one that the locals use at a much cheaper price. And if I was to go further south, it gets even cheaper.
I save roughly 30 cents per gallon (11 cents per litre) every time by doing this. The Chevron right near the border knows it can charge more since most Canadians passing by will be either too lazy or ignorant about the prices and still be happy that they're getting a better deal than in Canada.
4. Get the right credit card to save on exchange rates
Getting a no foreign transaction fee credit card or U.S. dollar credit card can save you a lot of money. Normally, you'll need to pay 2.5% to convert Canadian dollars into U.S. dollars. Having a card with no foreign transaction fees will eliminate that entirely.
If you have a reliable source of U.S. dollars, you can also opt for a U.S. dollar card. This isn't useful for Canadian purchases, but it can be more convenient if you make purchases at American stores often.
One other tip is to get a credit card with rewards on gas purchases. You may already have one, so you can get some cash back or bonus points as well.
5. Get a NEXUS card
To save a ton of time at the border, you can get a NEXUS card to drastically cut down wait times. In terms of getting gas, going later at night with the NEXUS lane open usually results in no wait at all. But going during a busy day can be a nightmare if you don't have one.
An example of massive difference were 2 concerts I went to recently, both taking place in Seattle. The first was TWICE, a k-pop band. Luckily, everyone in the car had a NEXUS card, so I could get closer to my dear Jihyo with a border wait time of only 10 minutes.
The next trip (both Taylor Swift and the Toronto Blue Jays were playing that day) had one person riding with us who didn't have a NEXUS card. The rules clearly state that everyone in the car has to have one to use the express lane, so we spent 2 hours in line with other Swifties and Jays fans while NEXUS holders only needed to wait 15 minutes.
In short, time is money, so having a NEXUS can pass on some nice savings even if it costs a bit of cash every 5 years.
Pro tip on cost: Some credit cards also have a NEXUS fee waiver that can either reduce or eliminate the cost of getting one.
Important note: NEXUS wait times have been extremely long in the recent past and can be in excess of one year. If you're thinking about it, start your application now to get your card as soon as possible.
6. Buy groceries or pick up packages for the ultimate savings
Some grocery items are cheaper in the U.S., and if you have the time, you can also buy things like milk and eggs at a lower price to add onto your savings totals.
You can also order things online and have them sent to a U.S. post office box to save money on either the cost of goods or shipping costs. Do all of this in one trip and you'll be so much better off in terms of how much money you spend.
Do you cross the border to save on gas expenses?
Do you have any experiences or interesting stories from crossing into the U.S. to buy gas?
We'd love to hear them in the comments! Feel free to drop any questions in there as well. Happy fueling!
FAQ
Can I cross the border just for gas?
Yes, there is no problem as long as you have your passport/NEXUS, declare any excess gas, and obey all of the applicable laws when making your trip to the U.S.
Can you cross the border with jerry cans?
Yes, you can cross the border with jerry cans. In fact, this is the one of the best ways to save money when crossing as you'll be able to get more out of the increased savings per litre of fuel. The limit in terms of fuel carried back into Canada is 150 kg, or roughly 6 jerry cans.
What do you enter at the pump if you're asked for your ZIP code?
If you use a credit card to pay for gas at the pump and are asked for your ZIP code, enter the 3 numbers that appear in your Canadian postal code and then add two 0s to the end of it. For example, if your postal code is V6A 1X9, just enter 61900.
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