What is a good fuel economy in Canada: What's considered good in 2025

With rising fuel costs, inflation, environmental targets, and potential insurance savings, Canadian drivers are looking for new ways to keep more money in their pockets now more than ever. As a motorist, understanding your vehicle’s fuel economy rating isn’t just a set of numbers, it’s one step closer toward a greener, more affordable commute. Here's what you should know:

• Rising gas prices: After the 2025 removal of the federal consumer carbon tax, the national average for fuel fell to approximately $1.43/L. But inflation still exists and fluctuations can still impact household budgets.

• Environmental targets: Like many G7 countries, Canada’s new Climate Competitive Strategy aims to reduce carbon emissions, making efficient vehicles imperative to reaching climate targets.

• Insurance savings: Efficient vehicles, safe driving behaviours, and other factors can qualify Canadians for discounts on their insurance premiums.

In this guide, we’ll cover what a good fuel economy is by vehicle type, simple ways to improve your fuel efficiency, and explain how your driving habits can impact your insurance costs.

Fuel economy, explained

Before we dive into what’s considered a “good” fuel economy, understanding what exactly these numbers mean is essential. Canadians will see labels like L/100 km or Le/100 km on vehicles, but not everyone knows how to interpret them:

What L/100 km means

L/100 km measures how many litres of fuel your vehicle consumes to travel 100 kilometres. Lower numbers indicate higher fuel efficiency levels. For example, 8.0L/100 km means your car consumes 8 litres of fuel every 100 km driven. Ultimately, the lower your numbers the greater savings you can experience.

To calculate your car’s fuel consumption:

1. Fill your tank completely.

2. Reset your trip metre.

3. Drive normally until it’s time to fill up again.

4. Divide the litres used by your kilometres driven, then multiple by 100.

L/100 km ↔ MPG cheat sheet

Because we’re in Canada, we use litres per kilometre, whereas the United States uses miles per gallon (MPG). Here’s a quick conversion table for L/100 km and gas mileage:

City vs. highway vs. combined

What a lot of Canadians don’t know is that your fuel economy will vary depending on your driving conditions, such as traffic, driving habits, weather, and terrain. City driving consumes more fuel than highway driving because of:

• The time your vehicle spends idling.

• The constant stop-and-go movement of your car (think red lights, stop signs, etc.).

• Cold starting your engine.

• Low engine temperatures.

In contrast, highway driving usually leads to more fuel-efficient travelling because you’re maintaining a more consistent speed with fewer interruptions along the way. Another thing to note is that Canada’s diverse climate can also dramatically affect your fuel efficiency ratings:

• Cold air increases drag, meaning the air is denser during the wintertime, putting more resistance on your vehicle as you travel.

• Engines take longer to reach optimal operating temperatures.

• Winter tires add rolling resistance, which requires more engine power to maintain speed.

• Heaters and defrosters increase power consumption.

According to Natural Resources Canada, a temperature decrease from 24°C to 7°C could result in a 12 to 28% increase in fuel consumption during urban commutes.

Benchmarks of good fuel economy in Canada (2025)

Not all “good gas mileage” is the same across vehicle types. In other words, the fuel economy of an SUV, compact sedan, or full-size truck can’t be compared on the same scale. Let’s take a closer look at some benchmarks for fuel-efficient cars, SUVs, truck models, and electric/hybrid vehicles below:

Compact & midsize cars

• Excellent: Less than 6.0 L/100 km

• Good: Between 6.0 and 8.0 L/100 km

• Average: Between 8.0 and 10.0 L/100 km

The most fuel-efficient cars are designed with lower weight and aerodynamics in mind. However, winter driving can decrease your gas mileage, despite maintaining an optimal fuel economy for the majority of the year.

Driver tip: Maintain your tire pressure during the winter months. Cold weather decreases your tire pressure by approximately .19 PSI per 1 degree Celsius, according to Tire Pirates, which increases your risk of a tire blowout, impacts your ability to brake, and reduces your fuel efficiency levels.

SUVs & crossover

• Excellent: Less than 8.0 L/100 km

• Good: Between 8.0 and 12.0 L/100 km

• Average: Between 12.0 and 14.0 L/100 km

Fuel-efficient SUVs and crossovers are some of the most popular vehicles in Canada. However, their design and size can reduce fuel efficiency levels. All-wheel drive (AWD) fuel-efficient SUVs, which are more popular in snowy provinces, consume more fuel than four-wheel drive (4WD) models. Natural Resources Canada indicates that a loaded and even an empty roof rack increases fuel consumption, which is caused by an increase in drag.

Pickup trucks

• Excellent: Less than 10.0 L/100 km

• Good: Between 10.0 and 14.0 L/100 km

• Average: Between 14.0 and 16.0 L/100 km

A pickup truck’s payload and towing force the engine to work harder, which increases fuel consumption. Modern pickup truck models have what is known as cylinder deactivation, which shuts down some cylinders in the engine when the vehicle is travelling steadily, which keeps it at a lower, more efficient RPM, improving the fuel economy.

Hybrids & plug-in hybrids

• Excellent: Less than 4.5 L/100 km

• Good: Between 4.5 and 5.5 L/100 km

• Average: Between 5.5 and 6.5 L/100 km

Hybrid vehicles excel in city driving conditions because they can obtain energy normally lost during braking and reuse it to help the engine, which is why a hybrid vehicle’s city fuel economy is often better than its highway driving ratings. Larger hybrid SUVs can have fuel economy ratings between 0.5 and 1.0L/100 km, higher than hybrid sedan vehicles.

Plug-in hybrid vehicles feature a larger battery that can switch to gas for longer commutes and power short trips entirely on electricity. But ultimately, their fuel economy rating is based on how often they are charged, and how much driving is electric vs. gas.

EVs & Le/100 km

• Excellent: Less than 2.5 Le/100 km

• Good: Between 2.5 and 3.5 Le/100 km

• Average: Between 3.5 and 5.0 Le/100 km

Electric vehicles measure energy consumption using Le/100 km, which shows how much electricity is used to travel a certain distance. In Canada, Battery electric vehicle efficiency can drop quite significantly in the winter because the battery delivers less power in lower temperatures and more energy is used for heating the interior and battery pack.

A test conducted by the Canadian Automobile Association (CAA) found that electric vehicles driven in temperatures between ‑7 °C and ‑15 °C lost between 14% and 39% of their advertised range. Ultimately, home level 2 charging is typically more efficient and cost-effective than public fast charging, which can lead to energy loss.

Quick comparison table

Let's take a closer look at the specifics:

Canada’s averages, labels & rules

Canada has its own standards, testing methods, and averages that can help you compare different fuel-efficient vehicles if you’re in the market to buy a new car. Let's take a closer look:

National averages

The average fuel economy of Canadian light-duty vehicles (cars, SUVs, and trucks) in 2022 was approximately 8.9L/100 km, according to Natural Resources Canada’s 2022 Fuel Consumption Guide. However, because the better part of the year is cooler in most provinces and territories, it’s important to remember that fuel use can be 10 to 25% higher in colder conditions. That means if you own a fuel-efficient vehicle with a 7L/100 km fuel economy, your actual consumption could be closer to 8 to 9L/100 km.

NRCan labels & testing

All new cars sold in Canada come with an EnerGuide fuel consumption label. These labels provide estimates for driving on city streets, highways, and combined driving, and are based on a 5-cycle test procedure that takes into account different speeds, loads, and driving conditions.

These labels can be found at dealerships or online through Natural Resources Canada’s Fuel Consumption Ratings Search Tool, which comes in handy if you’re looking to buy a new fuel-efficient vehicle.

Canada vs. U.S. vs. EU

As we briefly touched on earlier, Canada uses L/100 km ratings while the U.S. uses MPG. The EU also uses L/100 km, but tests its vehicles under slightly different conditions.

10 factors that affect fuel economy rating (ranked)

Understanding your vehicle’s fuel economy goes beyond what the sticker on your car window indicates. Fuel economy is influenced by a combination of driving habits, your vehicle’s condition, environmental factors, and more. Here’s a closer look at the top 10 factors that affect fuel economy in Canada:

1. Driving style (smooth vs aggressive)

Driving, speeding up, and slamming on the brakes can make your car use more gas. If you drive more smoothly, like speeding up slowly, keeping your speed even, and slowing down gently, you’ll use less gas. Using cruise control on the highway to keep your speed steady can also help save gas.

2. Average trip length (short cold starts)

Shorter trips consume more fuel because the engine needs time to reach optimal operating temperatures. Cold starts, especially during the winter, can worsen your fuel economy ratings. Consider combining your errands into one trip and avoiding multiple short trips if possible. Even a 5 km trip in -20°C weather can increase your fuel costs.

3. Vehicle weight/cargo & roof racks

Carrying a bunch of stuff you don’t need in your car makes it heavier and uses more gas. Try to keep your car light by taking out stuff you don’t need. Also, things like roof racks or bike holders on your car can make it harder to move through the air, especially when you’re driving fast, which means using more gas. If you’re not using them, it’s better to take them off or use ones that attach to the back of your car to help save on gas.

4. Tire pressure & rolling resistance

Keeping your tires properly inflated helps save gas. If the tires are low, your car works harder to move. Also, using the right tires for the season and making sure they’re in good shape can help with gas mileage. Aim to check your tire pressure monthly, including the spare tire.

5. Speed & highway aerodynamics

On the highway, you can drive at a steady speed, which helps your car use gas more efficiently. But if you drive fast, your car will use more gas because it must work harder against the wind’s resistance, which increases with speed, especially in larger vehicles like SUVs and trucks. Limit any roof-mounted accessories and keep your windows closed at high speeds to reduce drag.

6. Idling & remote start habits

Idling for heat or to defrost your windshield consumes fuel unnecessarily. If you’re idling for longer than 10 seconds, you’re essentially wasting more gas than actually restarting your engine entirely, as mentioned by Natural Resources Canada. Consider using block heaters during the winter and only idle briefly to warm your interior.

7. AC/heat, defrost, heated seats/wheel

Turning on the air conditioning full blast uses a lot of gas. If you’re driving slowly, opening the windows is better because it uses less gas. But if you’re going fast, using air conditioning is actually better because open windows make your car work harder against the air. Also, try not to use extra car gadgets like seat warmers or the defroster more than you need to because they make your car use more gas.

8. Maintenance (plugs, filters, alignment)

Dirty air filters, worn spark plugs, poor-quality engine oil, clogged fuel injectors, and misaligned wheels can all reduce your vehicle’s energy efficiency levels. Make sure you’re staying up to date on your maintenance requirements to ensure your engine performs as efficiently as possible.

9. Drivetrain & gearing (AWD vs FWD; final drive)

Cars that use all their wheels (AWD or 4WD) can use more gas than cars that only use the front or back wheels (FWD or RWD) because they have to power more wheels. If you don’t need a standard All Wheel Drive vehicle for everyday use, consider a Front Wheel Drive car instead.

10. Winter tires vs all-season (compound & pressure)

Winter tires are essential for travelling safely during the winter, but they can reduce your vehicle’s energy efficiency levels. Make sure you switch back to your summer or all-season tires when temperatures are above 7°C.

Hybrids, plug-ins, and EVs in a Canadian winter

Hybrids and electric vehicles (EVs) are changing the game for how much fuel a car uses, offering greener choices compared to regular cars with just gas engines. Here's what you should know:

Hybrid/PHEV benchmarks

Hybrid vehicles mix a gas engine with an electric motor to use less fuel and reduce pollution. They’re great for city driving, where you stop and go a lot, because they can save energy when you brake and use it to power the car. This means the gas engine doesn’t have to work as hard, saving you fuel. They also have innovative features like turning off the engine when you’re stopped and using the electric motor to help when you speed up, allowing some hybrid models to use less than 5 litres of gas per 100 kilometres.

EV metrics & adoption

Electric cars don’t use gas at all; they run on electricity stored in batteries. They’re very efficient, turning more than 60% of that electrical energy into power for the car, compared to about 20% for gas cars. They also use regenerative braking to save energy, making them very efficient. They don’t produce any pollution from the car itself and are cheaper to run because electricity costs less than gas. Some electric cars are so good that their energy use is less than two litres of gas per 100 kilometres.

As battery tech and how we charge cars improve, hybrids and electric cars are becoming more important in making transportation greener and more efficient. In fact, Statistics Canada reports that approximately 10.8% of new vehicle registrations in 2023 were electric, and which adoption of these vehicles is growing exponentially in BC and Quebec.

Incentives snapshot

Most provincial governments offer incentives to motorists for purchasing an electric motor vehicle:

• Federal incentive: iZEV program (Transport Canada)

• Quebec: Roulez vert program (QC)

• British Columbia: CleanBC rebates (BC)

Does better fuel efficiency lower insurance?

While fuel economy itself doesn’t directly help you save money on your car insurance premiums, the behaviours and vehicle type associated with a better fuel economy can. Here's what you should know:

What insurers actually look at

Insurers often consider:

• Claims history: Past accidents and driving infractions play a major role in your risk profile.

• Vehicle repair costs: High repair and replacement costs for upscale materials will increase your premiums.

• Safety features: Vehicles with automatic braking, lane assist, and collision avoidance can qualify for discounts compared to luxury models.

• Usage and mileage: Lower annual mileage can reduce risk exposure and lower your rates.

The indirect links

A good fuel economy often comes from smarter driving habits or smaller, lighter vehicles. Both of which can influence your insurance costs:

• Safe driving habits: Smooth acceleration, gentle braking, lower speeds.

• Telematics programs: Many insurance companies offer discounts for low-mileage drivers, consistent speeds, and careful driving.

• Vehicle type and size: Smaller engine sizes and vehicles in general cost less to insure than full-size SUVs and pickups.

Example scenarios

Let's compare two situations that can lead to very different results:

1. A hybrid SUV with telematics: The driver drives smoothly in city streets and has low mileage, which can translate to lower premiums and optimal fuel economy.

2. Large SUV with long commute: Higher height, AWD drivetrain, and aggressive highway habits can lead to higher premiums and poorer fuel economy.

12 Quick Wins (from free to paid): How to improve your car’s fuel consumption L/100 km this week

To improve fuel economy today you can:

Free

1. Plan and combine errands.

2. Drive smoothly.

3. Check tire pressure (34–36 PSI).

4. Limit idling.

Low-cost

1. Buy low-rolling resistance tires.

2. Replace engine air filter.

3. Use winter tires correctly.

4. Remove unnecessary cargo.

One-time upgrades

1. Remove roof racks when not in use.

2. Install block heater timers.

3. Invest in aerodynamic modifications.

4. Get ECU professionally tuned.

Contact BrokerLink today

Your vehicle’s fuel economy depends on vehicle class, driving habits, and winter conditions. Compact SUVs, cars, hybrids, and electric cars can achieve a higher fuel economy compared to fuel efficient SUVs and trucks. Protect your fuel efficient car with the right insurance, contact BrokerLink today.

Get an auto insurance quoteCall Us 1-866-724-2372

FAQs on the fuel economy

Is 10 L/100 km good?

Ten litres per 100km is considered average for larger vehicles like SUVs and trucks but is on the higher side for smaller passenger cars, where lower figures are more desirable.

What’s Canada’s average?

Canadian average is approximately 8.9L/100 km.

How do I calculate at the pump?

1. Fill your tank completely.

2. Reset your trip meter.

3. Drive normally.

4. Divide litres used by km driven, then multiple by 100.

L/100 km vs MPG, how do I convert?

235.215 divided by L/100 km.

How much worse is a fuel efficient car in winter?

Your fuel efficiency can reduce by 10 to 25% in the winter.

If you have any questions, contact one of our local branches.