Canadian spending on gasoline increased by 9.1 percent in March, according to an RBC consumer spending tracker. This rise is directly linked to escalating oil prices, fueled by geopolitical tensions in the Middle East.
"A sharp increase in gasoline prices, tied to geopolitical tensions, boosted spending at fuel stations, and contributed to strength in essentials’ purchases," the tracker noted.
Beyond fuel, overall consumer spending in March showed continued growth, with entertainment and arts categories leading non-gasoline related increases. RBC highlights this trend as consumers increasingly prioritize experience-related spending.
Despite the surge in fuel costs, spending on groceries and household items saw a minor decrease of 0.8 percent, while dining expenditure fell by 0.6 percent. Conversely, spending on travel rose by 0.9 percent, and clothing and apparel saw a 0.7 percent increase.
In response to rising prices, Prime Minister Mark Carney announced a temporary suspension of the federal fuel excise tax, effective from the following Monday until Labour Day. This measure is expected to provide immediate savings for consumers at the pump.