The ongoing drop in global energy prices might be stinging Canada's oil producers and the loonie, but it's giving a boost to Canadian drivers.
Gasoline prices are currently at a two-year low across Canada, ranging from $1.08 a litre in Edmonton, to $1.19 in Toronto, $1.29 In Halifax, and a high of $1.35 in Thunder Bay.
Dan McTeague of says drivers can expect to see prices stay low until the end of Christmas
"It'll mean a great boon --maybe $15 to $20 a week extra in our pocketbooks," he told CTV's Canada AM Thursday.
McTeague says gas prices are so low because supply is currently outstripping demand to the point that there is now a glut of oil on the market.
"Everyone is producing it, they're producing it at record levels, demand from around the world… has dipped, and as a result we have a lot of suppliers looking for fewer users," he said.
However, over the long term, McTeague says lower oil prices are going to hurt Canada's economy, due to its heavy reliance on energy production.
The global price of crude is hovering around $84 per barrel, down more than 25 per cent from its high point for the year.
Middle Eastern oil producers can weather the dip because their production costs are low, he says, as can U.S. fracking companies. But extracting oil from the oilsands is much more expensive, meaning it may become difficult for western Canadian producers to justify the costs with so little return.
"The fact is, Canada could be caught in a bind in the long term," says McTeague.
While lower gas prices may be a welcome relief for drivers and travellers, if low energy prices persist into January or February, Canada's economy could be facing real fears about deflation.
