Increasing Gas Prices In Canada Have Potentially Lasting Consequences

Gas prices in Canada are continuing to smash records, setting the stage for potentially lasting consequences on everything from the cost of goods to consumer behaviour.

Gas prices in Canada are continuing to smash records, setting the stage for potentially lasting consequences on everything from the cost of goods to consumer behaviour.

The price of a litre of gasoline jumped to $2.22 cents per litre in Vancouver on Monday as prices at pumps across the country trended up to start the week.

Experts say that the rising gas prices are compounding the economic toll of inflation on Canadians.

This is because higher fuel prices have a knock-on effect throughout the economy, pushing up prices for other goods and hurting consumer sentiment.

The result is a kind of inflationary domino effect, with climbing gas prices raising shipping costs and higher shipping costs hiking the price of goods.

Still, some point to high gas prices in Europe — long much higher than in North America — and suggest prices here are simply finally catching up.

A survey on behalf of the Tire and Rubber Association of Canada found 66 per cent of drivers said fuel prices will force them to cancel or limit road trips this summer. Among young drivers aged 18 to 24 that number climbed to 75 per cent.