Nearly 7 out of 10 drivers worry they can’t afford gas when prices rise, survey finds – National | Globalnews.ca

Most drivers say they’re worried they won’t be able to afford it filling cost As records this summer at the pumps gas prices According to the results of a recent survey, keep climbing.

Since the average price of regular gasoline was above the $2 per liter mark earlier this month, 69 percent of Canadian respondents were a ipsos A poll conducted exclusively for Global News said they were worried they would not be able to afford the gas.

Those fears were even more widespread in families with children (80 percent) and younger generations aged 18–34 (77 percent) and 35–54 (74 percent).

In an interview with Global News, Gregory Jack, Ipsos Canada’s vice president of public affairs, said “there is a lot of concern about the affordability of the gas.”

“The concern is especially true across the country and especially with those who have children.”

About 75 percent of Canadians say they are driving less to save costs at the pump. Half of Canadians surveyed also said that when they pull in the pumps, they can’t afford to fill their entire tank.

Most market watchers have pointed to the war in Ukraine and the lingering COVID-19 pandemic as gas supplies disrupted and prices soared for months.

While those pains remain, GasBuddy petroleum analyst Patrick de Haan says the start of the summer travel season – without pandemic restrictions halting travel for many people – is putting renewed demand on the barrels of oil that it needs. making in the market.

“I think we are seeing more demand and interest even in the midst of record prices,” De Haan says.

Jack notes that higher gas prices have come at a particularly hard time as many Canadian workers return to the office after two years of remote work.

It is not just high gas prices that travelers need to worry about, as widespread inflation affects essential spending in the household budget. Even brown-bagging lunches and avoiding eating out at the office can be costly compared to before, Jack said.

“Then you have the cost of food, the cost of clothing, all the different things going into the office … all of which are adding up to Canadians,” he said.

“You have a perfect storm to get people really feeling the pinch of inflation through the price of gas.”

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Ipsos also polled Canadians to ask how high they are to hike gas prices. Three in 10 (29 percent) said they expect gas to reach $2.50/liter, while 15 percent of those surveyed expect prices at the pumps to reach $3/liter.

De Haan said the $2.50-bar is not out of the realm of possibility, but added that “disruptive conditions” would be needed for prices to go so high this summer.

In particular, he said disruptions in oil production from major hurricanes such as Harvey or Ida would be a major risk to gas prices this summer.

“Having said that, I do expect some relief, should we be able to survive hurricane season without a major storm,” he said.

De Haan said gas demand typically peaks in mid-July or end, which begins to decline during the slow fall season in August.

A boom in oil production in Canada and the United States may give motorists “breathing room” at the pumps, but he warned that the ongoing war in Ukraine and the fluctuating global economy could put pressure on gas prices. Huh.

“We could be in this period of elevated prices for the next year or two, potentially beyond,” De Haan said. “It’s very difficult to know because of the unique circumstances we are in right now.”

The sticker shock at the pumps is prompting more Canadians to consider downsizing their vehicle or switching to an electric option.

Some 44 percent of respondents told Ipsos they are considering switching to a smaller, more fuel-efficient vehicle next year.

More than a third (36 percent) of respondents said they are considering buying an electric vehicle (EV) in the next year to reduce their gas bills, compared to nearly half (49 percent) of 18 to 34 year olds. Simultaneously, old respondents say that they are thinking of going out of power.

Those earning more than $100,000 a year were more likely to think about buying an EV (45 percent) than those earning between $40,000 and $60,000 (31 percent).

The high upfront cost of EVs is certainly a deterrent to making the switch, but Professor Dimitri Anastakis of the Rotman School of Management says that the more consumers see the electric model on the road, the more they see it as a viable option. Huh.

“We’ve been dealing with internal combustion engine cars for over a century, and now the option is really for the masses to buy an (electric) vehicle; it’s still more expensive than gasoline-powered cars. A little more expensive, but it is a realistic option,” he told Global News in an interview last week.

“It’s a lot cheaper to fuel your EV than to fuel a gasoline-powered engine.”

But price is just one factor that depends on whether an EV home is in the near future.

The lack of rare minerals and semiconductors used in the manufacture of an electric vehicle is a hindering factor on the wider rollout of such cars, Anastakis notes. Government incentives for the purchase of such vehicles also vary from province to province, adjusting the cost-benefit analysis for some Canadian consumers.

Finally, there is the issue of reliable charging infrastructure. While Anastakis notes that today’s refueling infrastructure remains gasoline-focused, in a few years’ time, he sees the calculus shifting to keep EVs on the same ground.

“In the next ten years, anyone who is going to buy a vehicle will be faced with this fundamental question: Do I get an internal combustion engine based on gasoline or do I get an EV?”

— With files from Global News’ Aaron D’Andrea and Anne Gaviola