26 - Friday, November 10, 1989 - North Shore News

AUTOM OT I

Y €E

s

Canadians pay 50% more for gasoline

UNITED STATES gas sta-
tions grow more and more
appealing as government
taxes keep Canadian prices
high.

The B.C. Automobile
Assuciation (ECAA) recently
released results of CAA’s
third quarter survey of gaso-
line prices.

The CAA survey reveals

little fluctuation in the Ca-
nadian average price in the
third quarter. However, ma-
jor price increases did occur
in the second quarter when
premium and unleaded regu-
lar both jumped by at least
three cents.

From April to May alone,
prices went up over two
cents — fueled by the in-
creases in the excise tax on

gasoline announced in the
federal budget.

According to Energy,
Mines and Resources
Canada, gisoline now costs
on average 50 per cent more
in Canada than in the U.S.
Higher consumption taxes
account for two-thirds of the
differential.

Considerable evidence in-
dicates this high taxation

harms tourism, a $24 billion
industry and Canada’s se-
cond largest earner of
foreign exchange.

According to CAA chair-
man of the board Denis
Morand, ‘“‘High gas taxes
are a double-edged sword
which cuts tourism both
ways, slashing into both the
foreign and the domestic
markets.”’

Tourism Canada data
show that 10 years ago,
Canada was far and away
the primary foreign destina-
tion for American tourists.
Today, Canada has fallen to
third place, behind Mexico
and overseas destinations.

The trend continues this
year. From January to July
1989, auto tourists arriving
in Canada from the U.S.

decreased six per cent from
the same period the previous
year. In the peak travel
month of July, there was a
sharp 12 per cent decline
from July 1988.

High gas taxes also slash
into the domestic tourist
market by providing an in-
centive for Canadians to
travel in the U.S.

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