22 - Wednesday, December 10, 1986 - North Shore News

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THE 2.4 MILLION member, not-for-profit Canadian Automobile Association (CAA) reported in October that gasoline prices had dropped one cent per litre since July.

Motorists will not have long to enjoy the mini-windfall, however, as the federal government will be increasing the excise. tax on gasoline by one cent per litre January 1, 1987.

The CAA monitors gasoline prices throughout Canada on a monthly basis and releases a quarterly .:port with figures pro- vided by Runzheimer Canada Inc., of Toronto. Runzheimer is an in-

TAX

firm specializing in transportation, travel and living costs.

Canadian gasoline prices bepen to tumble in response to the drop in world oil prices carlier this year. As the cheaper oil made its way through the refineries, consumers enjoyed the first significant gas price reductions in recent history. The promising gas price decreases witnessed through the summer months have now wound down to a trickle and motorists in Canada have yet to reap equivalent price savings as their U.S. counterparts.

At the end of August, motorists south of the border were paying about 31 cents Cdn. for a fitre of

ng ih:

self-serve station. Americans motoring to Canada on_ their summer holidays were no doubt shocked by Canadian gasoline prices which are on average 45 per cent higher than U.S. prices even after exchange rates have been considered.

According to CAA executive vice-president, Bob Erb, ‘‘Ever since gasoline prices started dropp- ing in North America, the price gap between motor fuel in Canada and the U.S. has increased. While American motorists have benefited from lower motor fuel taxes and a competitive marketplace, Cana- dian motorists have faced increas-

ner

prices.’”

In Canada, the amount of direct taxes levied on gasoline is roughly double that in the U.S. This has been a major factor in making Canadian gasoline considerably more expensive than U.S. gas.

As a result, the ability of Canada’s transporta- tion-dependent industries to com- pete with the U.S. has been reduc- ed, impacting negatively on our trade position with our largest forcign market. These facts not- withstanding, the federal gov- ernment is still planning to impose an additional burden on consumers in general by increasing the excise

gas prices

CAA’s president, Robert Brodie, has said, ‘‘The federal government gasoline excise tax in- crease will cost Canadians an addi- tional $300 million next year. Fur- ther, by making transportation- dependent industries less com- petitive it may cost the economy on the whole many millions more.”

In September, British Colum- bia’s average price for regular unleaded at a self serve was 44.9 cents per litre. Alberta, at 39.3 cents per litre, had the lowest prices in Canada while New- foundland, at 52.6 cents per litre

ternational management consultant regular

66

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