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Cottage Life

What the new gas tax cut in Ontario means for your cottage commute

With a trip to the cottage costing you $100 in gas (give or take, depending on your vehicle) heading north is becoming cost-prohibitive for cottagers and renters alike. To help combat the soaring gas prices, Ontario Premier Doug Ford cut the gas tax by 5.7 cents per litre on July 1. The tax cut will remain in effect until December 31, with the possibility of an extension if prices remain inflated.

“People and businesses are feeling the pinch of high gas prices and grocery bills,” says Peter Bethlenfalvy, Ontario’s Minister of Finance, in a statement. “Our government is cutting the gas and fuel tax rates to put money back in people’s pockets and help keep costs down.”

On July 1, when the Ontario government implemented the gas tax cut, prices dropped 11 cents overnight to an average of $193.9 cents per litre. This came as much-needed relief for drivers after gas prices hit a record high of $2.15 in early June.

The province’s dizzyingly high gas prices are the result of low supply and high demand. “We’ve got crude oil inventories down 13 per cent—according to the last U.S. government report—which is not good,” says Roger McKnight, chief petroleum analyst for En-Pro. “That’s why prices went up.”

The reopening of the economy after the COVID-19 pandemic and Russia’s invasion of Ukraine has put constraints on the global supply of gas and oil, driving up inflation rates.

Gas prices in Canada have also been hiked by the federal government’s carbon tax, which was bumped up to 11.05 cents per litre on April 1.

Despite concerns over Ontario’s record-setting gas prices, McKnight says they aren’t likely to last. As of July 7, gas prices in Ontario dropped another 12 cents per litre to $1.79. Again, a relief to drivers, but the underlying cause for the price drop is concerning. Economists are predicting a recession, McKnight says. “Unless there’s some glimmer of hope or some optimism on Wall Street that this recession will not happen, then prices will continue to fall in the short term.”

If a recession does hit, which is possible considering the Bank of Canada continues to raise interest rates, then demand for gas will drop as people lose jobs and attempt to save money.

A recession is a possible outcome that people need to be prepared for, McKnight says. But for the time being, if he were a consumer watching gas prices drop 12 cents per litre or more, “I’d hop in my car and get on with this driving season. I don’t know how long it will last…I can’t see prices spiking or reversing anytime in the immediate future. So, have some fun.”

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Mobile Syrup

Canadians fret about ability to fill tanks this summer: study

Drivers across Canada are worried they won’t be able to afford gas this summer.

A survey by Ipsos, prepared for Global News, found that 69 percent of respondents shared this concern.

The belief was the most widespread in respondents with kids.

The fear is contributing to a change in driving habits for many, as 75 percent of respondents said they’re driving less. 50 percent say they can’t afford to fill their tank when they arrive at the gas station.

At the time of writing, the national gas price average was more than $2/litre, according to the CAA.

The high price is leading many to re-consider their future modes of transportation. 44 percent of survey respondents said they’ll be switching to a vehicle that’s more fuel-efficient within a year and 36 percent say they’re considering the purchase of an electric vehicle (EV).

But the high cost of these vehicles also plays a role.

People earning more than $100,000 are more likely to purchase an EV, with 45 percent of respondents falling under this sphere. The figure sits at 31 percent for those making between $40,000 and $60,000.

1,001 Canadians were interviewed between June 9th and 13th for the survey.

Image credit: Shutterstock

Source: Global News

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Cottage Life

Natural gas price to increase up to 23% in Ontario as of July 1

You may want to scale back that Canada Day barbecue you were planning. Starting July 1, the price of natural gas in Ontario could jump as much as 23 per cent.

On June 16, the province’s regulator for electricity and natural gas, the Ontario Energy Board (OEB), approved Enbridge Gas Inc.’s application for a price increase. The natural gas distribution company said that the ongoing Russian conflict paired with strong domestic demand and increased global demand for U.S. liquefied natural gas exports has resulted in historically high natural gas market prices. North American production hasn’t been able to keep up with demand as natural gas storage levels currently sit below the five-year average.

All of Ontario’s Enbridge Gas customers and Union Gas customers—which amalgamated with Enbridge in January 2019—will be affected by the price increase; a total of 3.8 million. Customers should expect to see the increase reflected in their next billing cycle following July 1. How much a customer’s bill will increase depends on the amount of natural gas they use and which rate zone they fall under.

Enbridge customers are broken up into four rate zones: Enbridge Gas Distribution, which includes the Greater Toronto Area, Niagara, and Ottawa; Union South, which stretches from Windsor to Mississauga and Mississauga to Orillia; Union North West, which includes Kapuskasing to Kenora; and Union North East, which stretches from Orillia to Kapuskasing, North Bay to Sault Ste. Marie, and Port Hope to Cornwall.

Enbridge Gas' Rate Zones
Photo Courtesy of Enbridge Gas Inc.

Based on the average annual consumption of 2,200 cubic metres to 2,400 cubic metres of natural gas, the rate zones will see between an 18 to 23 per cent jump in prices. At that level of consumption, Enbridge Gas Distribution customers should expect an annual bill increase of $247.53, Union South $251.81, Union North West $239.99, and Union North East $244.25.

These prices would have been higher but the OEB approved a rate mitigation plan proposed by Enbridge. The company is using a 24-month period to pass the increased cost of natural gas on to customers, as opposed to the usual 12-month period. This will temporarily shield Enbridge customers from the full impact of the skyrocketing market prices, keeping bill increases to about $5 a month over the July 1 through September 31 adjustment period, says Andrea Stass, a spokesperson for Enbridge, in an email.

Without the rate mitigation plan, a customer’s annual natural gas bill would have jumped between 21 to 29 per cent, an increase of $270 to $315, depending on the rate zone, says the OEB.

With OEB review and approval, Enbridge adjusts the cost of its natural gas every three months to reflect market prices. The next adjustment is in October, but don’t expect a sudden decrease in your bill. Stass says Enbridge anticipates high natural gas market prices to continue for some time.

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Cottage Life

5 ways to spend less on gas

With fuel prices escalating of late, now is the ideal time to revisit fuel efficiency with a few helpful tips on how drivers can spend less on gas by making fewer trips to the pump.

Tip #1: Do your maintenance

A properly maintained vehicle will consistently outperform a neglected unit, and therefore use less fuel. Regular service is essential but there are several do-it-yourself tasks which owners can, and should, perform on a weekly or, at a bare minimum, monthly basis. If possible, set a regular scheduled day for this, perhaps the 1st weekend of every month.

First, check the fluid levels under the hood (oil, coolant etc.). Also, this is the perfect time to top off that windshield washer fluid.

Second, monitor your tire pressure—underinflated tires are one of the leading causes of poor fuel economy. In fact, a drop of just a few pounds (lbs) of air pressure could reduce your fuel economy by as much as 10-15%. It is also a serious safety issue which can lead to accidents. Typically, recommended pressures are to be found on the decal inside the driver’s door or on the driver’s door pillar. Failing that, they can be found in the owner’s handbook.

This task should be performed when the tires are cold and, if possible, refrain from using gas station gauges as they are notoriously inaccurate. Personally, I use a quality dial style pressure gauge (available at any good automotive store) and my advice is don’t cheap out.  A quality brand product might cost a little more but it will supply years of service. I also carry a small portable compressor in my vehicle, just in case. Again, I would recommend purchasing quality (I carry a cordless battery-pack DEWALT unit). Should you go this route, a rather accurate pressure gauge is already built into the unit.

Tip # 2: Learn to drive smoothly & efficiently

Drivers tend to believe that it’s their accelerator pedal which burns all the fuel, yet unnecessary use of the braking system can certainly waste fuel. Why use up all that forward energy by hitting the brakes unnecessarily?

So keep your eyes up and read the road ahead—if that traffic light has been green for a while now, there’s a very good chance that it will soon turn red. Be prepared for this. In fact, a quick glance at the pedestrian countdown numbers used on many intersections today is a great indicator of when that change might happen. Coasting smoothly to a stop will not only save on your fuel bill, but also the wear and tear costs of your braking system.

When pulling away, try to roll gently onto the accelerator pedal rather than stab at it. Smoothness truly is the key to greater fuel economy. In fact, master the art of smooth driving and you could realize savings of as much as 20 per cent or more, depending on the size and type of your vehicle.

Many years ago, I was trained as a chauffeur and this is what I was taught during that training; visualize your grandmother sitting in your back seat sipping on a glass of sherry and drive accordingly. Try it, it works!

Tip # 3: Declutter your vehicle

We all do it! Throw items in the trunk and forget about them. I had a friend once who carried a full set of golf clubs, just in case! That’s like constantly carrying an extra person in your vehicle! So it’s a good idea to go through your vehicle every now and then with the mindset of decluttering and discarding unnecessary weight.

This particularly applies to racks and roof-mounted storage boxes. While useful when you need them, if you’re using them less than once a month, I‘d suggest that the few minutes required to remove them is well worth it. The wind resistance/drag alone from these can easily cause a drop of between 5-10 per cent in fuel economy, again depending your car’s size and type.

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Tip # 4: Don’t be idle

Sitting in an idling vehicle gets you nowhere, but it does burn fuel. So whenever possible, the golden rule is, 60 seconds or more, switch off your engine. I’m particularly mindful of this when it comes to drive-through restaurants. My own rule is, more than 3-4 vehicles in the lineup, I simply park up and go inside.

Idling a vehicle is possibly the greatest waste of fuel. When you truly think about it, it is 100 per cent inefficient in fuel terms, so there are considerable savings to be had by reducing this.

Tip # 5: Use the tools you’ve got

Most modern vehicles have a host of features designed to assist drivers (eco mode etc.) and one of my favourites is the instant fuel economy display. Drive utilizing this feature and you’ll soon learn how to save fuel.

In town, it will teach you the foolishness of being heavy footed and, on the highway, you will learn precisely where your vehicle’s sweet spot is (all vehicles have a “cruising sweet spot”). The difference of a few kph can produce a huge change to fuel economy, especially over a long distance trip.

Make use of this display and watch those numbers for just a few weeks and you will most certainly become a far more fuel efficient driver.

Safe driving tips for Canada’s varied landscapes

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