With gas prices at their lowest levels in years, drivers are no longer dreading a fill-up. It’s all because of low oil prices but cheaper crude is a double edged sword for Canadians.
Gas prices were below $1.10 a litre on Friday in our region; in Orillia it was about $1.09, $1.04 in Barrie and around $1.02 in Alliston.
This is the cheapest gas has been since December 2010 and the reason? An oversupply of crude oil in the world is driving prices down and this could be the new normal for a while. Gas price analyst Dan McTeague says the savings will continue into the New Year.
“The average Canadian is using about 80 to 85 litres of fuel a week compared to what they were paying in June or July they will save at least $25 a week filling up their tanks.”
In Western Canada, the price has already fallen below a $1 a litre. A price McTeague says drivers in Ontario could see soon or hover around for the next four to five months.
While it’s a benefit for consumers, some analysts say the long term effect may not be good news for government budgets that depend on oil revenue.
“The economy needs prices to be a little higher because when you think about the revenue that’s generated from that; that funds a lot of programs,” says CTV News' Chief Financial Commentator Pattie Lovett-Reid.
And you can expect more relief at the pumps this weekend as analysts are predicting the price will drop another three cents.
Here is a list of gas prices reported on Friday afternoon:
- Aurora - 110.9
- Newmarket - 110.9
- Barrie - 104.2
- Alliston - 101.6
- Collingwood - 110.9
- Orillia - 107.6
- Midland - 106.9
- Gravenhurst - 107.9
- Huntsville - 109.7
- Parry Sound - 112.9
