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Gas consumption and the price of gas
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Canadian motorists took a hit at the pumps in 2005. They could blame conflict in the Middle East, hurricanes Katrina and Rita in the Gulf of Mexico, and an aging northern pipeline for the higher gas prices.
The higher prices coincided with lower consumption, as drivers bought less gas for their vehicles—the first major decline in gross gasoline sales since 1994. Exceptions were Prince Edward Island, where the provincial government controls the price of gas, and Alberta, where there is no provincial sales tax.
Gasoline prices across Canada peaked in September 2005. In Montréal, they averaged 118.5 cents a litre for regular unleaded gas at self-service stations. Prices averaged 107.2 cents in Toronto and 102.2 cents in Edmonton. By contrast, prices in August 2002 averaged 75.3 cents a litre in Montréal, 70.3 cents in Toronto and 68.8 cents in Edmonton.
In 2005, drivers bought 39.8 billion litres of gasoline, down 1.4% from 40.3 billion litres in 2004. A 0.1% dip occurred in 2001, when the attacks of September 11 disrupted the transportation industry.
Gas sales increased in 2005 in two provinces: sales rose 4.1% in Prince Edward Island and 0.6% in Alberta. However, if growth of vehicle registrations is factored in, gas sales per vehicle decreased 3.5% in Alberta by from 1,563 litres per vehicle in 2004 to 1,509 litres in 2005.
The biggest drop in gross sales per vehicle occurred in Saskatchewan—down 16.7% from 2,038 litres per vehicle to 1,697 litres. Gross gas sales decreased 3.0% in Ontario and 2.8% in Quebec. In 1999, Ontario and Quebec had the highest gross gasoline sales, whereas Prince Edward Island, the Northwest Territories and Yukon had significantly higher gas sales per vehicle.
