Question about diesel prices (Liters to Gallons)

Melroy75

Member
10
Hey folks,

quick question here, was doing some fuel calculations in the office for reports and I'm pretty sure I'm messing something up and need help. When converting $/liter ($2.238/liter) to $/Gallon.....I am getting figures at ($2.23 x 3.78) $8.46/Gallon?? the National US diesel avg is at $5.613/Gallon.

Am I crazy or are we paying $1 and change more per gallon than our US neighbors? ($8.46 CAD to USD $6.60)
 

dad2andrew

Active Member
15
Correct calculations, but don't forget you'll have to change your currency. You're ending up with 8.46 CAD for a US gallon. 6.60 should be the USD/gallon, which is closer to the US average.

But yes, you're not crazy. close to $2 more/gallon. I think I did the right calculations.
 

Melroy75

Member
10
Correct calculations, but don't forget you'll have to change your currency. You're ending up with 8.46 CAD for a US gallon. 6.60 should be the USD/gallon, which is closer to the US average.

But yes, you're not crazy. close to $2 more/gallon. I think I did the right calculations.
thank you sir for the quick feedback!
 

Jim L

Well-Known Member
30
Also remember that you get the HST back so:
C$2.238 / litre divided by 1.13 HST = C$1.9805 / litre without HST
C$1.9805 / litre X 3.785 litres / gallon(US) = C$7.4963 / Gallon(US)
C$7.4963 / Gallon(US) divided by 1.3 USD / C$ = US$5.76 / Gallon(US)

Average DOE on Monday was $5.61/Gallon National so it is starting to make sense.

To make it more complicated you also have to remember that for any number of liters that you fill up over what you use in Ontario you can claim back in CRA fuel charge program at $0.134 / liter so depending on your lane it may make a difference.

And now to really confuse you (just disregard this...) a Canadian Gallon is 4.5 liters compared to a US Gallon at 3.785....
 

Melroy75

Member
10
Also remember that you get the HST back so:
C$2.238 / litre divided by 1.13 HST = C$1.9805 / litre without HST
C$1.9805 / litre X 3.785 litres / gallon(US) = C$7.4963 / Gallon(US)
C$7.4963 / Gallon(US) divided by 1.3 USD / C$ = US$5.76 / Gallon(US)

Average DOE on Monday was $5.61/Gallon National so it is starting to make sense.

To make it more complicated you also have to remember that for any number of liters that you fill up over what you use in Ontario you can claim back in CRA fuel charge program at $0.134 / liter so depending on your lane it may make a difference.

And now to really confuse you (just disregard this...) a Canadian Gallon is 4.5 liters compared to a US Gallon at 3.785....
Thank you this lays it out, forgot to account for tax. Sucks though since we run within ON so I dont believe we qualify for the CRA fuel program.
And now to really confuse you (just disregard this...) a Canadian Gallon is 4.5 liters compared to a US Gallon at 3.785....
LOLL yes ran into this head scratcher but to keep it simple went with the US Gallon as a refference.
 

Jim L

Well-Known Member
30
Thank you this lays it out, forgot to account for tax. Sucks though since we run within ON so I dont believe we qualify for the CRA fuel program.
If you are not PRP plated and only run Ontario then you will not qualify for the Fuel Charge program. Your fuel surcharge is collected at the pumps. The fuel charge program is a process, much like IFTA, to ensure the jurisdictions where fuel is burned receives the carbon tax.

I wonder if there is any enforcement on the US carriers or carriers domiciled outside of those jurisdictions that charge carbon tax through the federal level?
 

Michael Ludwig

Well-Known Member
20
If you are not PRP plated and only run Ontario then you will not qualify for the Fuel Charge program. Your fuel surcharge is collected at the pumps. The fuel charge program is a process, much like IFTA, to ensure the jurisdictions where fuel is burned receives the carbon tax.

I wonder if there is any enforcement on the US carriers or carriers domiciled outside of those jurisdictions that charge carbon tax through the federal level?
Bahahahahaha ... They can't even stamp out Driver Inc. What on earth would make you think they are enforcing this on US carriers ???
I'm not making fun of you Jim. You do raise a very valid point. Just off the top of my head, I would think that Canada would like the U.S. carriers to participate, but I seriously doubt there is any real enforcement.
 

ONMARST

Member
5
Hey folks,

quick question here, was doing some fuel calculations in the office for reports and I'm pretty sure I'm messing something up and need help. When converting $/liter ($2.238/liter) to $/Gallon.....I am getting figures at ($2.23 x 3.78) $8.46/Gallon?? the National US diesel avg is at $5.613/Gallon.

Am I crazy or are we paying $1 and change more per gallon than our US neighbors? ($8.46 CAD to USD $6.60)
8.46-13%=CAD 7.36 PER GALLON 7.36/1.26=5.84 US PER GALLON
 

Ruler

Active Member
10
wish brokers / customer would see what fuel prices are as they want us to ship cheap and we loose dollars as we cant afford to ship for same prices as last year due to fuel increase
 

Michael Ludwig

Well-Known Member
20
wish brokers / customer would see what fuel prices are as they want us to ship cheap and we loose dollars as we cant afford to ship for same prices as last year due to fuel increase
I'm not sure why you think they don't see them. They drive cars the same as the rest of us do. I expect they attend gas stations to fill them up. I am quite certain most of them can read.
Don't ever think for a moment that shippers and brokers do not know what the price of fuel is. It is foolish to believe otherwise.
However, if you are going to take loads that do not cover your expenses, that shipper or broker is going to offer them, and as long as you take them, they will continue to offer them.
Unless you are in a very definitive niche market, shippers and brokers have absolutely zero interest in whether or not you survive.
They have no obligation to your success or failure in any way shape or form. Success or failure is your responsibility, and yours alone.
Shippers and brokers loyalty is to their bottom line, not yours.
 
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