How much more are you spending on gas?
Last week, not that you needed us to tell you, MSN detailed just how much rising gas prices were sapping Canadian bank accounts.
By GasBuddy.com data, gasoline had jumped more than 30 cents per litre year-over-year since May, 2010 – a change that means, according to CIBC World Markets, gas now takes up more than five per cent of Canadians’ disposable income.
If we throw out 2008, when gas prices started high, shot sky-high and then bottomed out by year’s end, that CIBC number is an unprecedented figure that’s never been seen before in Canadian history.
And now? More confirmation. According to the Associated Press, the average household is spending about $168 more each month on gasoline than it did two years earlier, more now total ($369) than cars, clothes or recreation.
From here, there isn’t much good news to follow.
ABC News notes that the fuel price hikes, taking up more and more of the average motorists’ disposable cash, are also happening at a time when most people aren’t getting raises, in spite of the economy’s continued turnaround.
But the worst, maybe, is yet to come.
Goldman Sachs, the notorious i-bank, forecasts oil prices will soar to $135 a barrel by summer, meaning gas stations could hike pump reads to as much as $5 per gallon in the U.S. Switch that to Canadian terms, and we’re talking the $1.55-$1.60 range per litre, taxes considered.
Will that come? Let’s hope not, but the damage of rising gas prices is already undeniable.
On a monthly basis, how much more do you find yourself spending on gas these days?
By Jason Buckland, MSN Money
*Follow Jason on Twitter here.
Posted by: Northern Ontario | May 30, 2021 7:15:50 PM
I figure I am paying about $0.30 per litre more than last year's base of $1 litre. Based on 25 000 km per year and my normal mileage of 550km per tank, I fuel up 45 times per year. Each tank costs me $78 instead of $60. That means an extra $800 per year based on today's prices. I can probably cut back 1 Tim's per day and cut back my golf to 5 times per month instead of 6. This will save me about $100 mth which will offset rising prices in the summer. Of course, if we all do this, the economy will be worse thus cutting back jobs for those in need.
Posted by: Levitt | May 30, 2021 9:02:17 PM
Fortunately for me, my company lets me work from my home, so that leaves the use of my car for other things like groceries, etc. I am paying up to $1.60 per litre, as my car only runs on premium, but at the end of the month, it is not that much more. If I had to drive to work each day, however, that would easily add about $300 extra per month.
Posted by: Stockboy | May 31, 2021 8:36:22 AM
At $0.30 more per litre and my car gets 10km/litre. I travel an average of 160 km to work and back 5 days per week and lets say another 40km on weekends for a total of 840km per week. That translates to about 84 litres per week or 364 litres per month. Multiply that by $0.30 and that equals $109 per month. This year I received a 3.5% increase in pay so after taxes my take home pay raise equals about $100/month. Throw in other factors like rising food costs and I am finding less and less disposable income.
Posted by: Western Guy | May 31, 2021 10:11:07 AM
Well I think the madness has to end.
Stockboy at a quick calculation you make 50K a year. Why would you choose to live 80km from work? Either get a closer job or move closer to your work. So of your $2,900 takehome a month you are spending at least $420 on gas money just to get to work and you spend 400 hours a year driving there and back? Are you nuts?
You could take on a job that you had to work an extra hour every day and get paid 15% less and you would still be even moneywise and ahread on time. Also I am guessing you are driving a SUV or truck with the poor fuel economy (modern midsized cars are somewhere around 14-18km a litre).
All in all its your choice to live this way however I don't think you have any right to complain of the cost as you are choosing to live this way.
Posted by: B.C Driver | Jun 3, 2021 1:13:05 AM
I spend $700 per month on gas..
It's about $1.22 per l here in the valley.
I drive roughly 5000 km per month.And on the weekends I usually go for a cruise in my classic car or new truck..I own a small business,and love driving !!