Canadian drivers may finally have something to smile about: gas prices are falling across the country – and could continue to drop as we enter the holiday season, says one industry analyst.
Here is what a litre of gasoline cost at the average gas station in some cities across the country this weekend:
- Calgary - $1.02
- Moncton - $1.15
- Montreal - $1.20
- Vancouver - $1.28
Prices haven't been this low in Toronto since December of 2010. At $1.10 per litre on average, the cost in that city is down 16 cents from one year ago.
The drop in prices is translating to about $10 less per fill-up for the average motorist, although those driving fuel-guzzling trucks are paying more.
"We're down almost a third of the price in many places in the country,” says Dan McTeague, an analyst from TomorrowsGasPricesToday.com. “That lends support to consumers being able to make ends meet.”
Motorists can thank an increasing supply of crude oil at a time when demand for it is dropping, McTeague says. Outside North America, many economies are slowing down and therefore using less petroleum. Meanwhile, countries like Iran, Libya, the United States -- even Canada -- are ramping up production.
“Prices are about to remain low,” McTeague predicts, “unless there’s some kind of miraculous turnaround by OPEC.”
OPEC, the Organization of the Petroleum Exporting Countries, controls about 35 per cent of oil produced worldwide, allowing it to influence prices by increasing or decreasing supply from member countries.
Although the situation sounds like good news to most drivers, falling prices can have a negative impact on places like Newfoundland and Alberta, where economies depend heavily on oil production.
"Alberta is tough and resilient and we'll get through this,” said Alberta Premier Jim Prentice when recently asked about the impact of falling prices on his province.
“People need to be aware it's a time for fiscal prudence,” Prentice said.
With a report from CTV's Todd Battis
