Drivers not reaping full benefit of lower oil, BMO says

In the last oil slump, pump prices hovered around 80 cents per litre

  2

by

Online only.

  2

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.

2 comments on “Drivers not reaping full benefit of lower oil, BMO says

  1. It has to do with the strength in the US dollar. This is do the fact that a barrel of Oil is sold in US dollar. How was the US dollar in 2008 compared to Canada. I think it was a lot different.

    Reply

  2. Canadians thrive on BS and the oil companies know how to dish it out. The major oil companies are a monopoly and will charge what ever the trade will bear.

    Reply

Leave a comment

Your email address will not be published. Required fields are marked *