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Higher Canadian gas prices could cost households an extra $950 this year: CIBC
OTTAWA ` The recent surge in gasoline prices, if sustained, will cost the average Canadian household an extra $950 this year, according to a report issued Monday.
CIBC World Markets said the 25 per cent rise in pump prices since September would, at current levels, cost Canadian consumers an extra $12 billion over the course of 2011, equivalent to a tax hike of about seven per cent.
According to data from Kent Marketing Services, the average price of regular gasoline in Canada is more than $1.25 a litre, compared to about $1 last September.
"Higher-income households are better able to absorb the increase in energy spending without much sacrifice to their non-energy spending," said Benjamin Tal, deputy chief economist for CIBC World Markets. "In other words, the extra cost is largely borne by their savings.
Read the full article here.
OTTAWA ` The recent surge in gasoline prices, if sustained, will cost the average Canadian household an extra $950 this year, according to a report issued Monday.
CIBC World Markets said the 25 per cent rise in pump prices since September would, at current levels, cost Canadian consumers an extra $12 billion over the course of 2011, equivalent to a tax hike of about seven per cent.
According to data from Kent Marketing Services, the average price of regular gasoline in Canada is more than $1.25 a litre, compared to about $1 last September.
"Higher-income households are better able to absorb the increase in energy spending without much sacrifice to their non-energy spending," said Benjamin Tal, deputy chief economist for CIBC World Markets. "In other words, the extra cost is largely borne by their savings.
Read the full article here.