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U.S., Canada motorists weigh cuts to spending as gas prices surge to record

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At a Kroger station in Atlanta, general contractor L.W. Boyd had two fuel spigots going at the same time – pumping diesel into two giant tanks in the bed of his Ford F150 truck – fearful that already-high gasoline prices will just keep rising.

“This cuts me, but I have to keep my truck running or I don’t eat,” said Boyd, 35. With diesel now at $4.39 a gallon in his area, he planned to pay well above $400 to fill the truck and the two 50-gallon tanks.

Boyd’s move to pay more now in lieu of expected higher prices later may not be the strategy used by everyone, but many U.S. and Canadian motorists are considering ways to cut other expenses to afford to pay for record prices at the pump.

U.S. gasoline prices hit an all-time high Tuesday morning, jumping to $4.17 per gallon, according to the American Automobile Association. [O/R]

In the wake of Russia’s invasion of Ukraine, the United States and allies have led sanctions against Russia, a major oil producer, designed to cripple its economy. Russia calls its actions in Ukraine a “special operation.” Those sanctions are rippling through global oil trade, and could boost gasoline prices even more, threatening economic growth.

“We’ll definitely top $4.50 by mid-month,” said John Kilduff, partner at Again Capital in New York. “I would imagine we’d be knocking on $5 a gallon nationally if not above that just in time for Memorial Day. This is going to be very jarring and unsettling for consumers.”

It is unclear if the record price will result in massive spending cutbacks, as the previous high of $4.11 set in 2008 would equate to more than $5.20 per gallon in today’s dollars, according to RBC Capital Markets.

Federal Reserve Chair Jerome Powell said last week that the Fed estimates that every $10 increase in oil prices adds 0.2 percentage points to inflation and subtracts 0.1 percentage point from economic growth.

The increase has been rattling, with prices up about 50% from a year ago and more than 40 cents from a week ago, according to AAA. Analysts consider $4 a gallon to be a psychological trigger for consumers filling up at the pump that results in cost considerations for motorists.

GAS PUMP BLUES

In pockets of the country, costs are even higher. California’s average price is at $5.34 per gallon, the steepest in the United States.

Miranda Krauss, 43, drove to Costco in Carlsbad, California, from the city of Encinitas 20 minutes away to take advantage of the bulk discounter’s lower gasoline prices. “It’s gotten so bad I came all the way here for gas. I normally wouldn’t come up this far,” Krauss said.

In a recent Reuters/Ipsos poll of Americans, some 62% of respondents said paying more for fuel because of the Ukrainian crisis was worthwhile to defend another democracy.

There are few salves for rising prices, as worldwide production has not kept up with demand and Russia’s 7 million barrels of daily oil and fuel exports cannot be easily replaced.

President Joe Biden has ordered the release of 30 million barrels of oil from the U.S. Strategic Petroleum Reserve to ease price pressure, an amount matched by other large-consumer nations, but oil and gas companies cannot increase output swiftly.

Canadian consumers were also battling with higher fuel costs. In Brock, a township in Durham, Ontario, about 60 miles (100 kilometers) north of Toronto, Courtney Burghgraef said her family, which includes her four children, has been trying to cut back on everything.

“It’s worrisome that the cost of gas will then increase the cost of food, because the cost of transportation to bring stuff back and forth continues to rise,” Burghgraef said.

At a Phillips 66 station in Wolfforth, a town in northern Texas, Gilberto Meta, a 47-year-old maintenance worker filling up his GMC Yukon XL, let out a long sigh as he watched the dollars on the fuel gauge rise.

“I’m now spending more on gas than I am on groceries,” he said. “My wife and I were talking last week about trading this gas guzzler in for something more efficient.”

 

Graphic: A big change in gas prices from a year ago: https://fingfx.thomsonreuters.com/gfx/ce/gkvlgaqlbpb/Pasted%20image%201646691746129.png

 

 

(Reporting by Stephanie Kelly in New York and Rich McKay in Atlanta; Additional reporting by Dan Trotta in Carlsbad, Calif., Brad Brooks in Wolfforth, Texas, and Alexander Schummer in Toronto; Editing by David Gaffen and Matthew Lewis)

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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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