Question about Canada / USA fuel prices

Discussion in 'Canadian Truckers Forum' started by Canadianhauler21, Apr 23, 2021.

  1. Canadianhauler21

    Canadianhauler21 Heavy Load Member

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    My company is pretty strict on where we fuel. They want us to fuel 3 times in Canada per every 1 time in the USA. Apparently it helps with IFTA, not exactly sure what it is.

    I was under the impression that USA had cheaper fuel, when I worked at challenger I only ever fueled in the USA.

    To you owner operators, where do you guys usually fuel, and what is usually cheaper and better for you?
     
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  3. uncleal13

    uncleal13 Road Train Member

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    They probably get a better kick back from Canadian cardlocks.
    Just because they may wind up getting a refund on IFTA doesn’t mean they are saving money overall.
     
  4. liner

    liner Medium Load Member

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    I haven't bought Canadian fuel in a very long time now.Even with the exchange rate and paying the extra tax for miles traveled in Ontario its still much cheaper in the US.They will send us the info for best place to buy after all taxes are figured in along your route with every dispatch.
     
  5. MSQUARED

    MSQUARED Medium Load Member

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    There most likely getting kick backs/savings of pump price that there not passing onto the owner operator as someone else said even after the exchange rate your probably near 2 bucks more a gallon in Canada then the states
     
  6. Johny41

    Johny41 Road Train Member

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    right now
    1.26 cad/L in Tilbury On, Flying J, x 3.8 l/gal=4.78cad/gal divided by 1.25 usd to cad exchage rate=3.83usd/gal
    you get the HST 13% back, so 0.13 x 3.83=0.49usd
    so, 3.83usd - 0.49 = 3.34usd/gal ( the price per gallon after hst)

    Ontario IFTA refund tax 0.143 cad/L , x 3.8=0.54cad per/ gal divided by exchage rate 1.25=0.43 usd/Gal *

    so, 3.34-0.43 =2.91 usd/gal , because the 43 usd cents per gal above you can use to compensate IFTA tax for the states you don't buy, get quarterly refund.
    plus
    *considering the poor quality of diesel in USA comparing with Canada, doesn't make sense to buy in USA unless you have to. and you can find at least 10 cents/L cheaper than Flying J in Canada. I paid this week 2.49/gal at Roadys in Texas, I-35 exit 277, but my truck is pulling bad getting 0.3-0.5 mpg less , requires more often regens with this B20 biodiesel junk and waste money more often cleaning the dpf filter. from my experience Love's TS in US has best quality diesel.

    Average DOE this week in USA 3.14usd/gal
    Gasoline and Diesel Fuel Update - U.S. Energy Information Administration (EIA)
     
    Last edited: Apr 24, 2021
  7. MSQUARED

    MSQUARED Medium Load Member

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    Maybe I was a little high(think I had my numbers fresh in my head from comparing premium gasoline prices yesterday) but it's easily 200 plus more a fill up in Canada then the states for myself at PUMP PRICE and that's AFTER exchange, then you bring into account larger fuel savings in the USA then canada its kind of a no brainer.

    And you will get bad fuel any were and yes you have to watch were you fill up esp in winter time coming back into Canada
     
    Last edited: Apr 24, 2021
  8. mudflap77

    mudflap77 Heavy Load Member

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    Ok. You need to look at net fuel cost. Your fuel cost minus the fuel tax. You are paying the tax one way or another. If your company pays any fuel tax owing and also keeps any ifta refunded you are being jipped in my opinion if they are dictating you buy high tax fuel.

    Now I'm leased to Landstar. We get a really good discount in the U.S. and no discount in Canada. Most of the time Canadian fuel is cheaper when you figure net price. Winter fuel in the prairie provinces bring the price up a little higher than the state's but not much.
     
  9. OlivensT

    OlivensT Bobtail Member

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    Apr 24, 2021
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    Crystal clear, thank you for your contribution.
    Love's TS has even better DEF compare to some Petro Pass TS in CAN. So I will be getting my fuel in Canada and DEF at Love's in the US.
     
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