While world crude oil prices have dropped more than $90 US per barrel since mid-July 2008, there are some who believe that the price for gasoline does not fully reflect that decline. I've posted on it here and here and the comments show people still have some doubts. It's been a good discussion. Turns out it's not only happening here. Natural Resources Canada, in their most recent report, say they've received a number of "calls and correspondence...from Canadian consumers." As a result, they've put together a great synopsis explaining what's been going on. It's a short, but worthwhile read. I've selected a section below to share. It's a similar refrain to some of my previous posts. I've called it "Holler at the Dollar"....
"One of the main reasons consumers have not seen a similar decline at the pump has been the value of the Canadian dollar against that of the U.S. Prices for crude oil are set in international markets and based in American dollars. As crude oil is valued in U.S. dollars, the relative value of the Canadian dollar has a significant impact on prices that consumers pay for petroleum products such as gasoline and heating oil.
During the first six months of last year, the Canadian dollar was valued above that of the U.S. This meant the high crude oil prices—again valued in US dollar terms—that global markets were dealing with, were not fully felt in Canada. American consumers felt the impact of these prices more than Canadian consumers. The recent declines in our dollar have reversed the situation. As more Canadian dollars are needed to purchase goods valued in US currency, Canadians have not been able to fully benefit from the falling crude oil prices."
The full report can be found here.
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