(Photo: The Canadian Press)

By David Opinko / with files from The Canadian Press

Surging gas prices compound inflation’s toll on Canadians, hurt consumer sentiment

May 9, 2022 | 11:45 AM

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 an eye-watering 222.9 cents per litre in Vancouver Monday as prices at pumps across the country trended up over the weekend.

According to GasBuddy.com, prices in Vancouver are up 13.8 cents per litre from the same time last week and 27.2 cents compared to a month ago.

The national average for fuel prices is 190.6 cents per litre, or 161.1 in Alberta.

Drivers in Lethbridge can expect to pay 165.9 cents per litre on average, marking an increase of nine cents compared to the same time last week.

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

Experts say rising gas prices are compounding inflation’s economic toll on Canadians as higher fuel prices have a knock-on effect throughout the economy, pushing up prices and hurting consumer sentiment.

Opher Baron, an operations management professor at the University of Toronto, says higher gas prices drive up shipping costs and prices on goods like groceries and clothing.

Yet he says because Canada is such a large and rural country with inadequate public transit in some areas, many people don’t have any alternative but to pay higher prices at the pump.

Sohaib Shahid, economic innovation director at the Conference Board of Canada, adds that rising gas prices also have a disproportionate impact on low-income Canadians as they tend to spend a larger portion of their income on transportation, shelter, food and clothing.

(The Canadian Press)