Gas prices in Canada expected to keep rising: Yahoo/Maru poll
Most Canadians believe high gas prices are here to stay, and could keep pushing higher, a new Yahoo/Maru public opinion poll shows. However, only 16 per cent say they're serious about buying a fully electric or hybrid vehicle for their next automotive purchase.
The survey found more than a quarter (27 per cent) of respondents point to international events weighing on global oil supplies as the top reason behind higher prices at the pumps. North American (CL=F) and European (BZ-F) benchmark oil prices have soared in recent weeks in response to Russia's invasion of Ukraine, raising costs for refined products like gasoline.
The United States and its European allies are said to be in talks about a possible ban on exported Russian oil, a move one analyst said "could push the energy markets into the worst chaos of our lifetimes."
Russia is the world's third-largest oil producer behind the United States and Saudi Arabia, according to the International Energy Agency, and the world's largest exporter of oil to global markets. Last week, Canada banned oil and petroleum product imports from Russia. Canada has not imported crude from the country since 2019, and only imported small amounts of refined oil products from Russia prior to the ban.
Patrick De Haan, an analyst at the price-tracking website GasBuddy, said on Monday that he expects the average gas price in Canada to soon reach $2 per litre, driven mainly by the global response to the ongoing conflict in Europe.
"It has been absolutely staggering to watch the pace of increase," he said in an online video update. "Make no mistake, much of what we're seeing here is because of sanctions on Russia."
In addition to unfolding geopolitical events, the Yahoo/Maru public opinion poll shows 24 per cent of respondents believe companies in the energy sector are "hiking pump costs for greater profit." One in five linked elevated gas prices to the federal government's carbon tax, which is set to increase April 1. Six per cent say higher gas prices are due to rising demand. Five per cent blamed provincial taxes, while 13 per cent could not identify a major factor.
How long will high gas prices last?
More than half (56 per cent) of those surveyed say they believe the current prices at gas pumps are "here to stay," and may even push higher. Just over a quarter (27 per cent) expect prices will "stabilize and drop back down to a more reasonable level." One in six (16 per cent) could not determine the direction of future gas prices.
"I do think the biggest weekly increases are behind us. [But] we're not in the clear. The situation could worsen," De Haan said. "I do expect the [U.S.] national average will break the all-time record here in a matter of hours at US$4.10 per gallon."
Will higher gas prices impact electric vehicle sales?
Nearly half (48 per cent) of respondents say they would consider a fully-electric or hybrid for their next automotive purchase, with just 16 per cent saying they are "very likely" to buy those types of vehicles.
Intentions to buy a fully-electric or hybrid vehicle were found to be strongest in British Columbia and Quebec, and weakest in Atlantic Canada. Those with higher incomes and the highest level of education were found to be most likely to buy an EV or hybrid. The poll found no difference when intentions were broken down by gender.
The survey of 1,555 Canadian adults was conducted between Feb. 18 and Feb. 20, and has an estimated margin of error of +/- 2.5 per cent, 19 times out of 20.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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