Canadian consumers have been slow to change their driving habits, in spite of higher gasoline prices, according to a new study from Statistics Canada.
StatsCan reports Canadians drove their vehicles 332 billion kilometres last year; that’s 5.2% more than in 2002.
The number of vehicles on the road also rose 9.4% in six years and the agency reports that new motor vehicle sales in the first five months of this year have continued at a record pace. The retail sales volume of gasoline rose 7.2% from 2002 through 2007.
Another sign that driving habits have changed little: demand for urban transit has barely kept pace with population growth since 2002.
StatsCan says higher incomes and lower prices for other goods have partially offset the cost of higher consumption rates and gasoline prices. That combination raised the portion of income consumers allocate to gasoline to 3.8% in the first quarter, from 2.9 in 2002.
The share of income devoted to purchasing autos has dropped to 5.3% from 6.2 in 2002, primarily because of lower prices.
Meanwhile, the overall share of energy in consumer budgets has been steady at 6.7% over the past three years, reflecting lower electricity rates.
Natural gas prices have risen only 32% since 2002, versus a 123% hike in the cost of home heating oil. Energy consumption as a share of disposable income rose to 6.7% in 2005 from 5.8% in 2002 before levelling off.
The largest annual increase in gasoline consumption was in 2007, despite the cumulative impact of years of rising prices.
Retail sales of gasoline rose 3.9% last year, largely reflecting a 1.9% increase in kilometres driven by all vehicles as well as lower fuel efficiency.
Consumers setting aside more income to pay for gasoline: StatsCan
Higher incomes, lower prices for other goods have partially offset the cost gasoline consumption
- By: IE Staff
- August 14, 2008 October 31, 2019
- 09:23