Canada column for Sunday, Jan. 24/16
THE CANADIAN REPORT
(c) By Jim Fox
Canadian drivers are complaining they are being “hosed” or taken advantage of at the gas pump as low oil prices aren’t being reflected in the price.
Even the central Bank of Canada in its monetary policy report pointed out that oil prices have dropped about 75 percent from their peak in 2014 but gasoline prices have not fallen “as much as the reduction in crude oil prices would suggest, based on historical experience.”
Gas prices averaged $1.02 a liter ($3.88 Canadian for a U.S. gallon) nationally last month when crude averaged $37 U.S. a barrel.
In 2009, when oil sold for $39, the average price for gas was 85 cents a liter.
Gasbuddy analyst Dan McTeague said gas would cost far less if the Canadian dollar was at par with the U.S. currency, instead of at 70 cents U.S. now.
“The weakness in the loonie (dollar) accounts for over 12 cents a liter in lost purchasing power for motorists,” he said.
Analysts say it’s also due to higher margins by refiners along with increased taxes.