Although headlines based on today’s Statistics Canada reports have focused on sizable drops in full-time employment and a subsequent surge in unemployment rates across the country, perhaps more surprising are the latest numbers in their Domestic Sales of Refined Petroleum Products report, also released today.

Despite massive drops in crude oil prices and domestic retail fuel prices since this summer, with pump prices at or approaching levels not seen since early 2004, sales of motor gasoline and diesel fuel oil on a volume basis have dropped significantly.

Statistics Canada’s report comparing November 2007 and 2008 consumption, indicate sales of 8,463.1 thousand cubic meters of refined petroleum products, a drop of 4.4% year over year.  The drop appears most precipitous in diesel fuel oil, with a volume decline of 6.5% on a comparative basis.  The only notable increase was in consumption of heating fuel oil.

These declines are in line with October numbers, also released today, indicating a 1.8% year-over-year drop in domestic crude oil production despite a 2.0% increase in exports of crude oil and equivalent hydrocarbons.  (Approximately two-thirds of Canadian crude oil is ultimately exported.)

It would appear that these numbers are consistent with overall sentiment of weakening in the Canadian economy, affecting both individual consumers and industrial fuel customers.  In both instances, the decreased consumption statistics appear to defy predictions that dramatically lower fuel prices would lead to an increase in driving and a subsequent increase in fuel consumption.

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