Gas prices climb 25% over last year's rates - National average hits record-high of 82 cents per litre
www.nationalpost.com Robert Remington, with files from Ian Bailey in Vancouver National Post Saturday, February 15, 2003
CALGARY - The cost of driving a vehicle at today's record-high fuel prices has jumped more than 25% in a year, with the price of gassing up some behemoth sport-utility vehicles now exceeding $100 a tank of gas.
The price of regular gasoline reached a record 80.7 cents a litre this week, according to M.J. Ervin & Associates, a Calgary-based energy consultancy. But that national average, which is compiled every Tuesday, does not include a Wednesday increase in Vancouver of four cents per litre at some stations, or recent increases in Calgary, which is generally the last city in the country to see price hikes.
Factoring in the B.C. and Calgary increases, the average price of a litre of regular gasoline in 15 major cities now stands at 82 cents.
Supply disruptions caused by civil unrest in Venezuela and looming war with Iraq have contributed to the record prices, analysts say.
Gasoline has not cost anywhere near this much since the previous record high of 80.4 cents in May, 2001. And it's running almost 41% higher than last year's low of 58.3 cents.
Michael Ervin, president of M.J. Ervin & Associates, said the worst is likely over, because Venezuelan supplies are returning to normal and OPEC is promising stable supplies in the event of an Iraq war.
That's little consolation, however, to drivers in British Columbia, who will face another increase of 3.5 cents per litre on March 1 as a result of a fuel tax announced this week by Gordon Campbell, the B.C. Premier.
The fuel tax is expected to bring in extra revenue of $200-million annually, which is needed to improve transportation services, Mr. Campbell said. Most of that will be spent to improve rural roads.
The fuel tax has B.C. motorists fuming at the pumps and on open line shows, but Mr. Campbell defended his actions.
"There are many choices that people can make around transportation," Mr. Campbell said. "They can choose to drive in very expensive and gas-consuming cars. They can choose to drive in smaller cars. They can choose to use public transit."
The 3.5-cent increase means Vancouver-area residents will pay the highest fuel taxes in Canada at 20.5 cents per litre, according to The Canadian Federation of Independent Business. The B.C. average will rise to 14.5 cents a litre. Albertans pay the lowest provincial fuel taxes in Canada at nine cents a litre, while Greater Montreal residents and Newfoundlanders pay more than 16 cents per litre in fuel taxes.
M.J. Ervin's current survey of regular unleaded gas prices as of Tuesday range from a low of 67.7 cents in Calgary to a high of 94.9 cents in Yellowknife. (Calgary prices today are actually about 78.9).
Toronto's price is listed as 81.9, Ottawa's 83.2, and 89.5 in St. John.
At 82 cents a litre for regular, it costs $102.50 to fill the 125-litre tank of a GMC Yukon and $136.12 to fill the 166-litre tank of a Ford Excursion. A Ford Expedition's 106-litre tank would cost $86.92 to fill. A full tank of gas for a Toyota Corolla is $41, while a BMW 320i will cost $51.66.
Using manufacturer's fuel economy ratings, it will cost $15.99 to drive 100 km in a Ford Expedition in city conditions, while the same trip in a Honda Civic will cost $6.15 at today's prices.
The Canadian Taxpayers Federation said in a statement it is "alarmed" at the impact of the Campbell government's tax hike, noting it has recently urged the B.C. government to cut the 1.25 cent per litre gas tax collected to subsidize B.C. ferries.
"Instead of hiking gas taxes, the B.C. Liberals should lock arms with other provincial governments to press Ottawa for a share of the federal government's gas tax revenues.
"Ottawa is a deadbeat tax collector that spends only a fraction -- 2.4% -- of its $5-billion in annual gas tax revenues on roads, 99% of which is spent east of the Ontario border," said Victor Vrsnik, the B.C. director for the federation, in a statement.
GETTING YOUR FILL COSTS MORE THAN LAST YEAR:
Cost to fill today at 15-city national average of 82 cents/litre:
SUV
GMC Yukon $102.50
Ford Expedition $86.92
MID-SIZE
BMW 320i $51.66
COMPACT
Toyota Corolla $41.00
Cost to fill at lowest national average price in 2002 (58.3 cents/litre):
SUV
GMC Yukon $72.88
Ford Expedition $61.80
MID-SIZE
BMW 320i $36.73
COMPACT
Toyota Corolla $29.15
Cost to drive 100 km at today's 15-city national average:
Expedition
City: $15.99
Hwy.: $10.82
BMW 320i
City: $7.38
Hwy.: $5.33
Corolla
City: $5.82
Hwy.: $4.35