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Here’s why gas is more expensive in the summer
It’s always a bummer for summer road trips: gas prices.
A boost in demand and the latest increase in the federal carbon tax has already affected prices, but there’s another key factor that may not be as obvious.
Like a good Canadian whisky, the secret is all in the blend.
Winter gas contains butane, a relatively cheap additive that helps cars start faster and run better in colder weather. In the summer, butane is left out in favour of alkylates, which burn cleaner but are more expensive to produce.
“Essentially it’s to limit air pollution during the summer months when many Canadians are on the road travelling,” Patrick de Haan, head of petroleum analysis at GasBuddy, told CBC Radio’s Cost of Living.
De Haan said the additional cost to consumers of switching to summer gas is around 10 to 15 cents per litre. However, the hike could be more or less depending on the precise blend used in a particular year or region.
There’s also the cost of switching from the winter supply to the summer blend, and downtime at refineries that can only do maintenance in the warmer months.
A small reprieve for consumers? Experts say to fill up at the beginning of the week, instead of closer to the weekend when more people are preparing for weekend road trips. Read more
The Bank of Canada has cut the key interest rate to 4.75%
Citing cooling inflation, the Bank of Canada has cut its key interest rate from five to 4.75 per cent. Bank governor Tiff Macklem also hinted that more rate cuts could follow.
The Bank of Canada has lowered its key interest rate to 4.75 per cent, marking the bank’s first rate cut since March 2020.
Bank governor Tiff Macklem said in remarks this week that the bank’s monetary policy no longer needs to be as restrictive.
“We’ve come a long way in the fight against inflation. And our confidence that inflation will continue to move closer to the two per cent target has increased over recent months,” Macklem said.
Economists were largely expecting the move. The inflation rate has moved closer to the bank’s two per cent goal, coming in at 2.7 per cent in April, with the bank’s preferred core measures of inflation also easing throughout the spring. Read more
Looking for a deeper read? CBC’s Peter Armstrong breaks down why the Bank of Canada still has a credibility problem. Read more
Air Canada was ordered to pay this couple $2,000, but it’s taking them to court instead
Close to four years after they filed a complaint with the Canadian Transportation Agency (CTA), Andrew and Anna Dyczkowski finally got a resolution — in their favour.
In November 2023, a CTA officer determined their 24-hour flight delay from Vancouver to Costa Rica in 2020 was Air Canada’s fault. The airline was ordered to compensate the couple $1,000 each, as per federal regulations.
But instead of getting cash, the couple was served with court documents in January. Turns out, Air Canada is taking them to Federal Court in an attempt to overturn the decision of the CTA officer. The agency is not named in the case.
“We’re kind of numb,” said Andrew, who believes the legal dispute should be between Air Canada and the CTA — not passengers.
“Leave us little folks alone. Like, we really don’t want to be in this business of courts, or hundreds of pages of legal documents,” he said. “Something is really wrong in the system.”
In an email to CBC News, Air Canada spokesperson Peter Fitzpatrick said legal challenges “are complex and costly,” and only pursued for “serious questions of fact or law.”
The CTA has asked the court for permission to participate in the case but Air Canada is fighting the request. Read more
What else is going on?
Online streaming services must pay into a fund to boost Canadian content
The CRTC ordered that five per cent of their Canadian revenues must be handed over.
WestJet announced an UltraBasic fare with no carry-ons, no seat choice and no points
Sure, you can get on the plane, but that’s about it.
Ontario auto theft claims surged past $1B last year
The Insurance Bureau of Canada said auto theft claims costs have surged by 524 per cent in Ontario and by 561 per cent in Toronto since 2018.
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