Canadians scale back spending as energy costs rise: survey
Last Updated: Wednesday, June 27, 2007 | 12:01 PM ET
The Canadian Press
Nearly half of all Canadians were cutting back on using cars, and more than two-thirds were shivering more in the winter and sweating it out this summer due to rising energy costs, a survey suggests.
In fact, only eight per cent of Canadians said they hadn't made any changes in their daily lives as a result of higher energy costs, according to Decima research commissioned by the Investors Group financial services company.
About 64 per cent of Canadians said the rising cost of gasoline and other energy will reduce the amount of money left over for saving and investing, according to a survey commissioned by the Investors Group financial services company.
(CBC)
About 48 per cent of Canadians polled said they were driving less due to higher gasoline prices. Albertans, with the lowest fuel prices in the country, were the least likely to leave their cars at home at 42 per cent, while Atlantic Canadians, at 51 per cent, were most likely to walk, take transit or stay home.
Due to higher gasoline prices, 73 per cent of Canadians surveyed said they were driving less and more slowly to save money.
The results were consistent across most of Canada, with the exception of British Columbia where, despite having some of the highest gasoline prices in Canada, only 57 per cent of residents surveyed said they were slowing down and driving less to cut costs.
Holiday plans altered due to rising gas prices
As well, 37 per cent of Canadians surveyed said they were likely to change their vacation plans because of higher fuel prices.
When asked how high gasoline prices need to go before they will change their vehicle use or stop it altogether, 28 per cent of Canadians said $1.25 per litre, and a total of 46 per cent said their threshold is $1.50 a litre.
"Costs for shelter and transportation are two of the largest parts of total household spending, according to Statistics Canada, and Canadians appear to be responding to increased energy costs by adjusting their lifestyle and spending patterns," Jack Courtney, assistant vice-president of advanced financial planning at Investors Group, said in a release.
To save energy expenses, such as heat and air conditioning, 69 per cent of Canadians said they were conserving year round by avoiding air conditioning in the summer or turning the heat down in the winter. Ontario had the highest number of energy-cost concerned citizens at 78 per cent, while Manitoba and Saskatchewan residents combined were the least likely at 57 per cent.
Overall, 64 per cent of Canadians said the rising cost of gasoline and other energy would reduce the amount of money left over for saving and investing, and 53 per cent said they would cut back spending on other things as a result.
The Decima polling data, gathered between June 1 and June 11, is based on a sample of 1,026 Canadians with a margin of error of 3.1 per cent, 19 times out of 20.
