A consumer spending tracker conducted by RBC found that Canadian spending on gasoline rose 9.1 per cent in March, as the conflict in the Middle East continues to drive oil prices higher.
“A sharp increase in gasoline prices, tied to geopolitical tensions, boosted spending at fuel stations, and contributed to strength in essentials’ purchases,” the tracker states.
RBC says that growth shows how consumers are “reinforcing the ongoing shift toward experience-related spending.”
Spending on groceries and household and construction fell 0.8 per cent from March, along with dining by 0.6 per cent.
However, spending on travelling increased 0.9 per cent from March, and clothing, shoes and related apparel rose 0.7 per cent.
On Tuesday, Prime Minister Mark Carney announced a temporary suspension of the federal fuel excise tax starting next Monday until Labour Day.
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Patrick De Haan, a petroleum analyst at GasBuddy, said Canadians can expect to see a notable change in prices “pretty quickly” from that, with an “average savings about $4 to $8 on a gasoline fill-up.”
“It’s going to be savings for consumers all summer long,” he said.
The Canadian Automobile Association currently lists national Canadian gas prices as 174.9 cents a litre, a slight rise from 173.2 cents a litre listed Tuesday.
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