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'Flabbergasted' by gas prices, people struggle as N.L. inflation surges

Working parents with a home and car say they're not surprised new gas and insurance taxes have increased inflation in Newfoundland and Labrador.

New taxes helped push inflation to highest in Canada, says Statistics Canada

Megan Marshall says her family is paying more than double to fill up the gas tank, compared to last year. (Meghan McCabe/CBC)

​Everywhere you go around the province it seems people are talking about cutting back just to get by, and Statistics Canada is now backing that up — Newfoundland and Labrador's inflation rate is now the highest in Canada. 

"It's pretty scary," said Megan Marshall, who works at the Autism Society of Newfoundland and Labrador in St. John's.

"We're a pretty average family. I work for a non-profit. My husband's a musician and he's in the service industry. We have a young daughter in school. And we're really just getting by — literally, it's fairly month-to-month for us — and I think that is the way it is for most people."

Statistics Canada said the new taxes on insurance and gasoline have helped push the province's inflation rate up.

You get paid, and it is all gone. There is no wiggle room for anything, really.- Megan Marshall 

Marshall told CBC News Tuesday her family is feeling the financial effects of the doubled gas tax and the new 15 per cent tax on car and home insurance.

She said her family now pays $80 a month to fill their car to get around town, compared to $40 last year.

"We are flabbergasted every time we drive by the gas station," she said. "But there's only so many hours a day that we can all work and we have kids to pay for. I don't know how much more I can do."

'No wiggle room'

When insurance on their car went from $150 a month to $250, she said she spent a day finding a cheaper option.

"You get paid, and it is all gone. There is no wiggle room for anything, really," she said.

Drivers say they are struggling to pay for a full tank of gas. (Meghan McCabe/CBC)

Marshall said she knows they are better off than some, and hopes other people can manage like they are by budgeting carefully and cutting out the extras they once enjoyed, like trips and other luxuries.

"Hopefully, we can just get through it and see some changes," she said.

"People in my generation, we work hard and we're trying to do the right things for our families and for our kids and stuff, and it's just a constant struggle."

'Can't even afford a full tank of gas'

At a gas station in St. John's Tuesday afternoon, several drivers were filling their tanks with just enough gas to keep them going.

Mitchell Fennell can't believe how much tax there is on gas. (Meghan McCabe/CBC)

Mitchell Fennell said the extra tax on gas is "unreal." He spends about $140 to fill up his truck, but not Tuesday.

"I can't even afford a full tank of gas," he said, adding people like him are just buying "whatever we can afford week-to-week."

Fennell said he is financially strained following last spring's provincial budget as well, and has made cutbacks.

"Yup, definitely. Like luxuries. I used to have a quad, Ski-Doo, and stuff like that. No more," he said.

"The Ski-Doo is really hard on gas. Quad not so bad, but I can barely afford to put gas in the truck let alone recreational vehicles."

ABOUT THE AUTHOR

Meghan McCabe is a former journalist who worked with CBC News in St. John's.