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Taxas and Inflation are Draining Us

The entire time I’ve been in Canada the price of gas has baffled me. I’ve been so used to measuring my tanks of gas by the gallon that when I got here and tried to think in terms of liters it never really translated, especially when you factored in the currency conversion. The other day I was at the pump and I started to read the taxes that are associated per liter that I couldn’t believe what I was seeing.

So let me work this out and please…if I’m missing anything please let me know. Currently in Vancouver, drivers are paying $1.20 Canadian per liter. Now when the US Dollar used to be significantly higher than the loonie the conversion didn’t seem to be quite as bad, but now that the Loonie and US Dollar are essentially at par, it’s very clear to me that one of the biggest rip-offs (taxation and inflation) going on right now is the price of gas Canadians are being forced to pay if they want to drive. Now we do have an awesome public transportation system here…but come on, nearly everybody owns at least one car.

There are 3.8 liters in a gallon. When you take that, multiplied by $1.20 (price per liter), drivers are paying $4.56 per gallon to drive. Four dollars and fifty six cents per gallon! When I first started driving back in 1991, I remember paying .85cents per gallon. That is over a 500% increase in 20 years in the price of gas. It’s almost baffling to think of where the price of gas could be in another 15-20 years.

Another point I want to make is in reference to the amount of taxes that Canadians pay on each liter of gas (see the picture I took to the right at the pump). I’m not including the 5%HST in this final calculation, so it will be even higher, but when you add those taxes together for each liter you buy of gas you are paying .29cents to the government in taxes. It’s almost like a reverse buy 3 gallons and you get one free…instead you buy 3 gallons and have to pay a liters worth of taxes and get nothing in return.