Crude costs both countries about the same per litre. Put the taxes in the same currency and the gap is clean: US taxes come to about 20¢/L (≈13–14¢ in USD — a federal 18.4¢/gallon plus a ~33¢/gallon state average, and most states don't even charge sales tax on gas), while a structural Canadian litre (Ontario) carries closer to 39¢/L once the federal 10¢ excise, the provincial 9¢, and 13% HST are stacked up. Litre for litre, in Canadian cents, that's roughly double the US tax burden.
The part that just changed
Two policy moves shrank the Canadian tax slice in quick succession:
- April 2025 — the consumer carbon charge was removed (permanently). At its 2024 peak it added about 17.6¢/L to gasoline; overnight, that layer went to zero.
- April 20 – September 7, 2026 — the federal 10¢/L excise is suspended. So right now, Canada's federal per-litre gas tax is effectively nil, leaving only provincial fuel tax and sales tax.
Stack those on top of a weak Canadian dollar (about 1.41 to the greenback) and an unusually high US pump price in 2026, and the historic “Canadians pay way more” gap has narrowed to something modest. The structural difference is still there — Canada taxes fuel roughly twice as hard — but 2026 is a temporary truce, and the excise holiday reverts on September 8.
It depends a lot on where in Canada
“Canada” hides an enormous spread. The government's cut of a litre ranges from about 21¢ in Alberta to over 50¢ in Metro Vancouver, where a 27¢/L provincial-plus-TransLink fuel tax piles on. That shows up directly at the pump: