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May 30, 2021

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.

Istockphoto_15142399-fuel-crisis 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.



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...