CCSD As crude oil prices continue to surge, cries for cuts to gas taxes by truckers and motorists alike understandably become more insistent. There may be a case for changes here, but increases to the GST credit make most sense from the point of view of protecting low income households from the prospect of soaring heating costs this winter. Arguably, higher energy prices are here to stay, and are needed to bring about the shift to conservation and higher efficiency to deal with global warming. The thermostat can only be turned down so far While the spotlight has recently been on gas prices at the pump, home heating costs are more significant for most Canadians, and are less easily avoided.
People can take the bus or drive less in response to higher gas prices.
But the thermostat can only be turned down so far when winter comes. It is interesting to note that household spending on private transportation tends to rise as a percentage of total spending as income increases, while spending on household energy costs tends to fall. Most seniors spend much more heating their homes than they do on gas, and low-income households tend to rely more on public transit. No one knows exactly what will happen to home heating costs this winter. Single households receive a modest supplement in recognition of the higher costs of living alone.