While you may have been thinking that gas prices were high enough this summer, did you ever wonder if the strong Canadian dollar was helping or hurting you at the pump? The Federal Government did, and the results are quite interesting.
Natural Resources Canada looked at gas prices in June of this year, which averaged about 106.6 cents per litre according to www.mjervin.com. They found that if the Canadian dollar had not jumped in value, "gasoline prices could have been as much as 14 cents per litre higher in June 2007."
That might have meant an average price of 120.6 cents per litre, or at least $7 more for a 50 litre fill-up.
Why is that? Well, because crude oil is purchased in U.S. dollars, "Canadian refiners have benefited from the increased buying power resulting from the strong Canadian dollar relative to its U.S. counterpart."
Now you may have read that and assumed refiners reaped most of the rewards. Not so.
"...due to competition in the North American gasoline market, Canadian gasoline consumers, and not the refiners, have benefited from the lower wholesale gasoline prices resulting from the stronger Canadian dollar."
There are positives and negatives to a strong Canadian dollar, but this study sheds a light on some little known good news for consumers.
If you want further information on how wholesale prices impact the price at the pump, read Gas Prices are like a three layer sandwich.
Photo credit: bgilliard