Issue link: http://digital.canadawide.com/i/144909
drivesmart Pumped Up? Making sense of changing gas prices — plus, how to save on fuel by Lawrence Herzog E TAX PANORAMA VER NOTICE THAT RIGHT AFTER YOU fill up, you often find fuel selling for less at another station? Or that fuel prices seem to spike right before long weekends in the summer? "Gasoline prices are affected by several factors, often simultaneously, which may make them rise or fall," says John Foran, director of oil and gas policy and the regulatory affairs division at Natural Resources Canada (NRCan). These include changes in world crude oil prices, local gasoline supply and demand, refining and marketing costs and margins. Then there's the cost of transporting fuel from refineries to retail outlets, local competition among retailers, seasonal demand and inventory levels. "Any of these factors can result in temporary fluctuations or regional differences," Foran says. Provinces tax fuel at different rates, and some municipal governments also add tax. (The average tax component at the pump – including provincial gas and sales taxes – was 34 cents per litre in 2010, according to NRCan.) They all add up to the price you see at the pump (see chart). Gasoline stations in smaller communities often sell less fuel than those in larger centres and may need to sell their products at a higher per-unit price to cover their fixed costs, he explains. Conversely, "some communities or neighbourhoods have more gasoline stations than others, which results in more competition among stations. This generally helps keep prices lower than in areas with only one or two gasoline stations." Drivers breathe a collective sigh of relief when fuel prices drop, but do we contemplate driving less when prices go up? Studies reveal that most don't change their habits much at all, although 51 per cent of the Saskatchewan drivers responding to a recent CAA Members Say survey of 4,000 national members said that they had looked into purchasing a highly fuel efficient car; 32 per cent, a hybrid electric-gas vehicle; and 10 per cent, an electric vehicle. iStock p44-45_Drive_Smart.indd 45 CITY PROVINCE METRO POP. TAXES (thousands) (cents) Vancouver British Columbia 2,313.3 43.7 Prince George British Columbia 84.2 34.5 Edmonton Alberta 1,159.8 23.7 Calgary Alberta 1,214.8 23.9 Red Deer Alberta 90.5 23.6 Lethbridge Alberta 106.0 24.0 Saskatoon Saskatchewan 260.6 30.3 Regina Saskatchewan 210.5 30.3 Winnipeg Manitoba 730.0 26.6 Hamilton Ontario 721.0 38.1 Toronto Ontario 5583.0 38.0 Ottawa-Gatineau Ontario-Quebec 1,236.3 37.8 Montreal Quebec 3,824.2 43.7 3,90.3 40.7 19.2 26.5 Halifax Nova Scotia Yellowknife Northwest Territories Sources: Natural Resources Canada Energy Sources (Feb. 15, 2012, Stats Can 2011 Census) There are ways to shave money off the cost of driving, and most of them start with the way we drive. By adopting a few simple driving techniques, the average driver could save $500 per year in fuel costs and prevent more than 1,000 kilograms of carbon dioxide from entering the atmosphere, NRCan notes. Start by taking the weight off your lead foot, and accelerate and brake gently. "The harder you accelerate, the more fuel you consume," says Charles Crispim, senior manager of the federal ecoENERGY for Personal Vehicles Program. "In the city, where about half of the fuel you consume is used to accelerate your vehicle, you can conserve as much as 15 per cent of your fuel by easing the pedal gently and gradually." By reading the road ahead and anticipating situations before they arise, drivers can brake more gently and coast more to decelerate. "To avoid unnecessary acceleration, drive at a steady speed," Crispim recommends. "You will not only consume less fuel but also help enhance traffic flow, minimize exhaust emissions and enjoy safer driving conditions." Getting there faster doesn't save fuel. "Each vehicle operates most efficiently at a given speed," he notes. "While this speed varies from model to model, most cars, vans and light-duty trucks are most fuel-efficient when travelling between 50 and 80 km/h. The faster a vehicle travels above 80 km/h, the more fuel it consumes." At 120 km/h, a vehicle consumes 20 per cent more fuel than at 100 km/h. Keeping your vehicle maintained in peak running condition with tires properly inflated, balanced and aligned also increases fuel efficiency. Using air conditioning sparingly, avoiding unnecessary idling, removing extraneous weight (clean out that trunk!) and removing roof racks when not in use also make a tank go further. i fuelfocus.nrcan.gc.ca (NRCan's Fuel Focus report, published every two weeks, examines the factors that influence Canadian gasoline prices), vehicles.gc.ca, caa.ca/primer WESTWORLD >> S U M M E R 2 0 1 2 45 4/13/12 12:44:54 PM