Canadians Expecting Higher Gasoline Prices

Calgary, AB - Canadians are expecting gasoline prices to rise even further this summer. A new Ipsos Reid survey conducted on behalf of The Canadian Centre for Energy Information shows that eight-in-ten (79%) Canadians expect gasoline prices will rise by 10 to 20 cents per litre, or more, this summer.

Many Canadians report that they have taken action or are considering action in response to recent increases in the price of gasoline. Slightly more than half say they've "reduced the amount of driving they do" (57%), "considered purchasing a more fuel-efficient vehicle" (55%) and "shopped aggressively for the best price on gasoline" (52%).

In addition, a substantial minority of Canadians have changed some plans in response to rising gasoline prices. One-third (35%) of Canadians say they've "changed their vacation plans to stay closer to home" and one-quarter (23%) say they've "delayed a major household purchase such as a television or appliance".

While most Canadians say they have taken action or are considering action in response to recent gasoline price increases, very few have managed to decrease their gasoline consumption during the last three years; a period when gas prices have risen more than 40%. Only two-in-ten (21%) say that their household has decreased gasoline consumption compared to three years ago. Twice as many Canadians (43%) say they've increased household gasoline consumption over this period.

The survey also shows that many Canadians have misconceptions when it comes to things like domestic supply of gasoline, taxes on gasoline and pricing of gasoline relative to other jurisdictions.

• On average, Canadians think that 39% of the gasoline used by Canadian consumers is supplied domestically. Only 15% of Canadians surveyed correctly estimated that the domestic supply is 70% or higher. (Note: The actual figure is likely closer to 95%, as Canada is a net exporter of gasoline.)
• On average, Canadians think that taxes account for 44% of the total retail pump price of gasoline. This is slightly higher than the actual figure of 35%.
• Nearly four-in-ten Canadians incorrectly believe that Canadian retail gasoline prices are "higher" than in Europe (38%), Great Britain (37%) and Japan (35%). One-in-three (33%) Canadians incorrectly believe that Canadian retail gasoline prices are "lower" than in the United States.

These are the findings of an Ipsos Reid telephone poll conducted between May 23rd and May 25th, 2006. The poll is based on a randomly selected sample of 1,004 adult Canadians. With a sample of this size, the results are considered accurate to within 177 3.1 percentage points, 19 times out of 20, of what they would have been had the entire adult population of Canada been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 300 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

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