With the Canadian dollar above par and generally lower prices in the U.S. Canadians are looking south of the border for deals on just about everything, and gas is no exception.

We decided to see if gas really is cheaper in the U.S., and how much you can actually save by filling up across the border.

As of today, the average price of gas in Canada was about $1.32 per liter CAD, and the average price of gas in the United States was about $3.92 per gallon USD. To compare apples to apples, we need to convert liters to gallons and account for the exchange rate.

Converting Liters to Gallons

1 Gallon = 3.78541178 Liters, so, we multiply $1.32 by 3.78541178 to find that a gallon of gasoline in Canada costs $5.00.

The Exchange Rate

The current exchange rate of $1.055 U.S. dollars for $1 Canadian dollar would also provide Canadian’s with a 5.5% discount on the price of gas in the United States, meaning that a gallon of gas in the United States would only cost Canadians $3.71 per gallon.

The Bottom Line

Taking into account the exchange rate, 1 gallon of gas in Canada costs about $5.00, while 1 gallon of gas in the United States costs $3.71, a savings of more than 25%! Keep in mind that these are average prices that may vary by city, but if you are close to the U.S. border, it can definitely be worth the drive south to fill up on gas.

A new study from BMO Capital Markets confirms what many Canadian consumers already know: We are paying more than Americans for identical goods…much more.

Despite the strong Canadian dollar being well above par (as of today it stood at around $1.04 U.S.), Canadians often pay up to 20% more for consumer goods such as shoes, clothing, books, furniture, appliances, cars and electronic goods.

Bruce Cran, President of the Consumer’s Association of Canada, estimates that Canadian’s actually pay about 30% more than our American neighbours.

Many Canadian retailers claim that the price difference is due to higher taxes and duties and the generally higher cost of doing business in Canada, which may be true to a certain extent, but a 30% difference? That just seems hard to justify, and even harder to swallow for Canadian consumers.

The massive price gap, combined with the strong Canadian dollar, means that cross border shopping is more attractive than ever. Whether you’re shopping online with a U.S. retailer or making a shopping trip down to Buffalo, Niagara Falls, Seattle, Tulalip, Plattsburgh or any other U.S. border city, there are big savings to be had in the United States.

If you’re planning a trip and looking to save money on airfare, consider taking flights from the U.S. instead of Canada.

After years of paying higher airfares at home, Canadian travelers are getting wise to the fact that there are big savings to be had by taking cheap U.S. flights from airports just across the Canada – U.S. border.

These savings can amount to hundreds, even thousands of dollars, particularly when travelling in groups of two or more.

A recent survey showed that in 2010, 21% of Canadians air travelers flew from the United States, and an additional 11% said they would consider flying from the U.S. in the future to save money on flights.

Why are flights from the U.S. Cheaper?

Why, you may ask, is there such a large price difference between U.S. and Canadian airfares?  The answer can be summed up with the following three reasons:

1. Lower Taxes in the United States – The biggest reason for the difference in airfares is that the United States imposes much lower taxes on airlines that the Canadian government.
2. Generally Lower Airfares in the United States – Due to greater competition and economies of scale, airfares in the United States are often lower than those in Canada, although this is not always the case.
3. Low Cost Carriers in the United States – Unlike Canada, the United States has a number of national and regional low cost airlines that fly exclusively to high demand destinations.

Depending on which city you live in, it can be well worth your time to drive to a nearby U.S. airport to catch a flight. Many of these airports are easy to get to and offer affordable long term parking rates. An additional advantage of flying from the U.S. is that you won’t have to waste time going through U.S. customs.

Which U.S. Airports Are Located Near Me?

For your convenience, we have compiled the following list of U.S. airports located near Canadian cities:

• From Toronto: Flights from Buffalo Niagara International Airport (BUF) and Niagara Falls International Airport (IAG)
• From Vancouver: Flights from Seattle Tacoma International Airport (SEA) and Bellingham International Airport (BLI)
• From Montreal & Ottawa: Flights from Plattsburgh International Airport (BPG)
• From Windsor & London: Flights Detroit Metro Airport (DTW)
• From Winnipeg: Flights from Grand Forks International Airport (GFK) and Fargo Airport (FAR)

If you are planning on flying from the U.S., make sure you plan accordingly by accounting for driving time and possible border crossing delays.