TORONTO – A report by the Bank of Montreal suggests Canadian drivers aren’t reaping the full benefit of lower oil prices when it comes to prices at the pump.
BMO senior economist Benjamin Reitzes pointed to a chart that showed when the Brent crude oil price was last at today’s levels in 2008, the average gasoline price was less than 80 cents per litre.
However, the average regular gasoline price today remains around $1 per litre.
The Brent crude oil price is a major trading classification of sweet light crude oil.
“With last week’s plunge in oil fresh in my mind as I headed into the weekend, I couldn’t help but notice how gasoline prices had ticked higher from the previous week,” Reitzes said.
“With Brent crude falling below C$55, a level last seen in 2008, gasoline around $1 per litre seemed odd.”
The average gasoline price in the U.S. has been around the US$2 per gallon level in recent days and broken below the key psychological barrier in some states.