Your Guide to Understanding Fuel Efficiency & Ratings in Canada

What is good fuel efficiency for a car? How is fuel efficiency measured in Canada? What impacts fuel consumption — and how can you drive more efficiently?

Every Canadian driver wants to spend less at the pump. To achieve that, you need to understand the numbers. This guide breaks down the core concepts of vehicle fuel efficiency, focusing on Internal Combustion Engine (ICE) cars. We'll clarify the official Canadian metric (Litres per 100 Kilometres), define what qualifies as a truly fuel-efficient rating, analyze the key factors driving consumption, and provide actionable eco-driving tips to ensure you burn less gas and lower your environmental impact.

Key Takeaways

  • Fuel efficiency in Canada is measured in Litres per 100 Kilometres (L/100 km), where a lower number indicates better performance.

  • After the powertrain, the driver's personal driving style is the most influential factor determining a vehicle's actual fuel consumption.

  • The average fuel efficiency of Canada's vehicle fleet is relatively poor compared to other major global markets, largely due to Canadians' preference for larger SUVs and trucks and unique environmental factors.

  • A vehicle's fuel economy is highly sensitive to a variety of factors including weight, aerodynamics, traffic, external temperature, and the state of maintenance.

  • Drivers can significantly improve their fuel efficiency by ensuring proper tire pressure, minimizing idling, and reducing unnecessary vehicle weight and aerodynamic drag.

Why Does Canada's Fuel Efficiency Lag Behind Other Nations?

Great question to ask, considering Canada ranked 11th for CO2 emissions in 2022.

This isn't due to a lack of available technology — zero-emission vehicles accounted for 10% of new vehicle sales in 2024 — but rather a complex mix of market trends and environmental factors.

Here are the main reasons why Canada's average fuel economy is relatively poor:

  1. Market Preferences Reflect Practical Needs Canadians are increasingly choosing SUVs and trucks (88% of sales in the first 3 quarters of 2025), responding to lifestyle and utility requirements, though these larger vehicles naturally consume more fuel due to their size and weight.

  2. Environmental Considerations Shape Vehicle Choice Canadian climate and geography influence vehicle features: winter conditions benefit from heating systems and all-wheel drive capabilities, while vast distances and varied terrain often favor more robust vehicles—features that impact fuel efficiency.

  3. Regulatory Framework Alignment Canada's vehicle efficiency standards align with North American integration, following similar approaches to the U.S. CAFE system, which allows flexibility in manufacturer fleet composition while meeting overall targets.

  4. Fuel Economics Influence Consumer Decisions Canadian fuel prices, while significant to consumers, provide different economic incentives compared to heavily-taxed fuel markets in Europe and Asia, affecting the cost-benefit analysis of vehicle efficiency choices.

What is fuel efficiency?

Fuel efficiency is the measure of how much gasoline (or diesel) fuel an ICE vehicle uses to travel a given distance. In Canada, fuel efficiency is measured as litres of gasoline used to drive 100 kilometres, or L/100km. A lower figure is more fuel efficient, because it represents less fuel used across the same distance.

 

Measurement

Definition

Interpretation

Litres per 100 km (L/100 km)

The amount of fuel (in Litres) consumed to travel a distance of 100 km.

The lower the number, the better the fuel efficiency.

Miles Per Gallon (MPG)

Sometimes included for context, especially on the EnerGuide label.

The higher the number, the better the fuel efficiency.

While fuel efficiency is impacted by countless variables including individual driving style and environmental conditions, these average numbers help shoppers compare efficiency between models. It’s easy to understand that a car capable of 5 L/100km is more efficient than one rated for 8 L/100km.

What is considered good fuel efficiency?

  • Excellent/Highly Efficient: A combined rating below 7.0 L/100 km. This is often seen in smaller cars and electrified models.
  • Good: A combined rating between 7.0 L/100 km and 9.0 L/100 km. This is typical for many mid-sized sedans and smaller SUVs.
  • Average/Below Average: A combined rating above 9.0 L/100 km. This is common for larger SUVs, pickup trucks, and performance vehicles.

What impacts fuel economy?

The most influential factor, after the vehicle’s powertrain, is the variable behind the wheel. Your personal driving style can turn an economy car into a gas-guzzler or vice versa. Stomp on the gas pedal, race through the streets, and wait until the last second to start slowing down and you’re going to burn a whole lot more fuel.

Traffic is also a consideration. Fuel efficiency is better on the highway when cruising at constant speed. On city streets and in heavier traffic, more fuel is used because of how often the car has to accelerate. Acceleration requires additional power from the engine, which means squirting more fuel into the cylinders to rev higher.

External temperatures and weather conditions also impact fuel economy. Extreme cold and heat will make an engine work harder and run less efficiently. Even variations in air temperature and density, like driving up into the mountains, can impact fuel economy.

Aerodynamics, the ability of a car to slice through the air, also affects fuel efficiency. Sleek, smooth designs move through the air more easily than big, boxy ones. Some cars even have active aero features that open and close flaps underneath the car and inside the grille to adjust how air flows around the car at varying speeds to optimize for fuel economy.

Vehicle condition and maintenance will also have an influence on fuel economy. An engine with thick, dirty oil and clogged filters will struggle to run as efficiently as one with fresh oil, filters, spark plugs, and other belts, fluids, and worn items properly maintained and replaced.

Tires play a role due to how they contact the road. Eco tires optimize fuel efficiency by reducing rolling resistance to make it easy to rotate the wheel. Performance-minded tires will be stickier to push harder against the road for higher traction, acceleration, and speed, but that added stickiness works against fuel efficiency.

Onboard features can also decrease fuel efficiency. Engaging selectable four/all-wheel-drive adds drivetrain resistance that requires additional power from the engine to overcome. ICE cars’ air conditioning systems run off the engine, so turning on the A/C costs extra fuel, too.

All these factors can improve or decrease fuel economy, but the most fundamental element determining fuel efficiency is weight.

How does weight affect fuel efficiency?

The heavier a car is, the harder it is to move. That means the engine works harder, burning more fuel than it would for a lighter vehicle. More weight means it’s harder to rotate the wheels under the car, so accelerating and cruising both require more fuel to counteract the opposing forces of inertia (to get scientific).

Saving money and the planet

Better fuel efficiency benefits the planet because it means less carbon and greenhouse gas emissions from the tailpipe. Using less fuel also means buying less fuel, so fuel efficiency decreases gasoline demand. Consider the environmental impact of the entire supply chain that brings gasoline from the depths of the Earth to your gas pump. Not only will less oil drilling help the planet, so will fewer big trucks on the road hauling fuel tankers.

Using less fuel means using less of Earth’s resources and reducing the amount of dirty, toxic, and unhealthy chemicals our cars emit into the atmosphere.

Of course, burning less gas will also translate to a higher balance in your bank account. Often, the cost of moving from an old, inefficient car into a new, fuel-efficient model or electrified option is balanced out by spending less at the pump. Yet even with a standard ICE car, you can take various steps to improve your fuel efficiency, reducing fuel consumption and environmental impact, meaning every driver can work towards a greener future.

How you can improve fuel efficiency

Adopting efficiency-minded driving habits is a key factor in maximizing fuel economy.


Drive Smoothly and Gently

  • Accelerate slowly: Ease onto the gas pedal to reach your desired speed.

  • Anticipate: Look ahead to traffic lights and slowing vehicles. Coast to decelerate instead of rushing and then braking suddenly.

  • Maintain Steady Speed: Use cruise control on the highway to avoid speed fluctuations, which can waste fuel.

Minimize Idling

  • If you expect to be stopped for more than a minute (excluding traffic), turn off your engine to limit idling time.

  • In winter, modern cars only need about 30 seconds of idling before driving gently; long warm-ups are unnecessary.

Keep Your Vehicle Maintained

  • Check tire pressure monthly (when tires are cold) and keep them at the manufacturer's recommended PSI.

  • Follow your vehicle's scheduled maintenance for oil changes and filter replacements.

  • Keep the A/C system maintained with refrigerant and clean filters.

Reduce Weight and Drag

  • Remove unnecessary items from your trunk or cargo areas, as extra weight forces the engine to work harder.

  • Take off roof racks, cargo boxes, or bike carriers when not in use, as they significantly increase aerodynamic drag.

  • Keep windows at higher speeds closed to reduce drag.

Update Habits

  • Plan your trips to combine errands and minimize unnecessary travel.

  • The air conditioner runs off the engine, so being mindful of A/C use helps save gas.

  • Pop the sunroof open when you start the car so all the hot air escapes up and out quickly, letting the cool A/C air take its place sooner.

  • For Mitsubishi owners, use Eco Mode and Super All-Wheel Control to automatically optimize performance for efficiency.

Fuel-saving technologies

Sustainably minded automakers are also deploying high-tech features to make their gasoline cars run more efficiently. For instance, Mitsubishi offers Super All-Wheel Control (S-AWC) which includes drive modes for various scenarios, including Sport, Snow, Mud, Power, and — you guessed it — Eco. Eco mode adjusts the engine, transmission, and all-wheel-drive system’s operation for maximum efficiency to get the most kilometres out of every litre of gas.

Computer control modules can do plenty to manage a car’s systems to manage fuel efficiency smartly. Automakers also invest in research and innovation to develop more advanced tires, construction materials, aerodynamic designs, and other inventions that reduce the work needed to propel a vehicle forward.

Engine technology like turbocharging that allows smaller engines to produce more power, direct fuel injection for more efficient combustion, and start-stop systems that reduce idle time also make a big difference in fuel economy. Hybrid technologies, combining a gasoline engine with an electric motor, offer significant fuel savings by enabling electric-only driving modes and regenerative braking. Together, these strategies and technologies provide drivers with a multitude of ways to improve fuel efficiency, save money, and reduce their environmental impact.

Hybrids and EVs

Hybrids and plug-in hybrids (PHEVs) add a battery and electric motor to assist the gas engine. This provides gas-free miles and more efficient miles even when using the gas engine since it doesn’t have to work as hard. Plug-ins can top up from the grid in addition to being charged by the engine and regenerative braking. They can get as low as about 3 L/100km (78 mpg) or about 4-6 L/100km (40-60 mpg) in most cases.

 

EVs ditch the gasoline altogether. Efficiency for an EV is measured in Le/100km (gasoline litres equivalent per 100 km), a measurement that relates electric efficiency to gasoline efficiency for easier comparison. EVs can easily achieve 2 Le/10km (100+ mpg equivalent) and emit no tailpipe emissions. The cost and environmental impact of electricity generation and delivery to your charger also influence the total efficiency and eco-friendliness of an EV, but having such an efficient powertrain tips the balance in their favor.

But wait, isn't the range of hybrids, PHEVs and EVs affected by cold, Canadian weather?

While there is some impact on range due to cold weather, it’s not as significant as it was in the early days. Especially for plug-in hybrids, which offer efficiency and flexibility.

The Road Ahead: Smarter Driving for a Greener Wallet

While Canada faces unique market and environmental challenges that contribute to our below-average national fuel efficiency, every Canadian driver holds the power to improve their personal fuel economy. 

By understanding that efficiency is measured in L/100 km, recognizing the heavy impact of weight and aggressive driving, and adopting practical habits like checking tire pressure and minimizing idling, you can directly reduce your gasoline demand. Whether you drive an ICE car, utilize advanced fuel-saving technologies, or transition to a hybrid or EV, prioritizing better mileage translates directly into a healthier bank account and a reduced environmental footprint.

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