OTTAWA (NEWS 1130) – It’s one of the silver linings of the low, low oil prices we’ve been seeing for the last few weeks. And they may be hammering our economy, but you are saving money every time you gas up your car.
A new report from the Bank of Canada points out the price at the pump hasn’t fallen nearly as much as the cost of crude and there is what, the central bank calls, a disconnect between the two.
The bank points out oil prices have collapsed 75 per cent from their peak in June 2014 but gas prices have not fallen anywhere near that much. The last time oil was at $39 a barrel in 2009, drivers were paying, on average, $0.85 per litre at the pump across Canada.
And the funny thing is drivers are really noticing that this time around.
“I think gas companies are manipulating the public because they can do that,” says this commuter.
“I’m feeling frustrated because the price of oil is so low and we should be paying less but there are so many taxes involved,” adds another Lower Mainland driver.
Analysts insist it’s not quite so simple, that the disconnect between low crude prices and what people are paying at the pump is being caused by the low Canadian dollar, higher margins at refineries and increased taxes.
Dan McTeague, senior gas analyst at Gasbuddy.com, says drivers would be paying far less per litre if the loonie was at par. He adds the weakness in the loonie accounts for over 12 cents a litre in lost purchasing power for motorists.
