With the price of crude oil nearing a two-and-a-half year high Monday, there are worries the skyrocketing prices could drag down the economic recovery if consumers change their spending habits.

On Monday, the Toronto Stock Exchange surged forward on commodity gains in the morning, but quickly retreated and fell as financial and energy stocks declined in value.

By close the S&P/TSX composite index had dropped 160.42 points, down 1.13 per cent overall. And the pain on Bay Street caused by the higher oil prices was also being felt on Main Street.

The turmoil in the Middle East and North Africa has been a pain at the pumps for consumers, with the average price for regular fuel across Canada just under $1.21 a litre.

That's up three cents from just a week ago, according to gasbuddy.com.

The rising prices could lead to another economic crisis such as the one in 2008 unless government steps in, Canadian Auto Workers union president Ken Lewenza says.

"They ought to cancel the tax breaks that are going to the oil companies that are going to see significant profits and generate those tax breaks into giving consumers a break," he told CTV News Channel Monday afternoon.

Lewenza also called for a "made in Canada" solution, saying Canada has the resources to refine more fuel.

Over the weekend in the United States, the Obama Administration said it was considering tapping into its oil reserves to help bring down oil prices.

Higher prices in the U.S. led to Southwest Airlines adding US$10 to its ticket prices Monday. Another airline, United Continental, dropped its 2011 growth plans and said it will have to cut unprofitable routes because of the high fuel prices.

Although U.S. prices have reached new highs for this time of year, overall, the price at the pump is higher for Canadians. That has led some Canadian drivers to cross the border to fill up.

Lewenza said the Canadian government must examine what the cost to the economy is as households are forced to allocate more in their budget to pay for fuel.

"They have to make it a priority," he said.