Our price is $.99/litre.

There are 3.785 litres in an American gallon, so we pay--assuming exchange is equal--$3.75 if we bought gas in the US. In Britain, we'd pay $4.50 because there are 4.546 litres in an imperial gallon.

That means Canada is paying $3.53 USD for 1 gal of gas. The current exchange rate is $1.06 CAD = $1.00 USD. As I said before the US dollar is declining and will continue to do so. The more it declines the more the price in the US will increase. In other parts of the world it will stay the same or decline as the USD declines. What people need to understand is the USD is declining for a couple reasons. The main reason is there is an OVERSUPPLY of US DOLLARS on the world market. When Europe went to the Euro Dollar...prior to that, ALL INTERNATIONAL MONEY TRANSACTIONS were done in USD. When the Euro dollar became the standard all that US currency that had been required to conduct those transactions among the EU countries was no longer needed. As a result 1 of 2 things had to occure.

1..either that US currency had to come back to the US and be pooled into the US money supply within this country thereby increasing inflation and prices. (remember inflation is an increase in the money supply. Its not the rising of prices. The rising of prices is the effect of inflation not the cause. And 90% of the US currency is held overseas and not counted in the domestic money supply.)

or

2..Devalueing the US dollar against the other curriencies around the world to offset the oversupply of US currency on the worldwide market.

This devaluing started shortly after the Euro dollar was introduced and was accelerated whe Iraq started pricing oil in its oil for food program in Euro dollars. This was the real reason why we went into Iraq several years ago. If the US had allowed that to remain in place it would have set a precident and further tumbled the dollar. The falling of the dollar was and is unavoidable. The only thing that will save it is to raise interest rates to levels we had in the late 1970. Which is where we are headed. Even Allen Greenspan in his book is predicting the 10 year bond interest yeild to be double digits before the end of the decade.