Two powerful forces are tugging at our resource-based economy. Gas prices are sinking fast, maybe even below 90 cents a litre in some locations this weekend.
Dropping as well is the loonie and Canadians’ buying power, especially when travelling to the U.S. On the surface, it all sounds like doom and gloom. But there is an upside to all this; more money in our pockets and more outsiders interested in buying our goods. At a Costco station in Ottawa’s east end, gas is selling for 90.9 cents and drivers are going nuts. Even off Montreal Road, where gas is a couple of cents higher, it is still an unbelievable bargain, according to driver Joanne Smith.
‘It’s fabulous, I can’t believe it. 92 cents!’
‘Not so good for investors,’ says driver Michael Mbilitem, ‘for consumers, definitely a dream.’
And so it is: a plus and minus. For consumers, police budgets, and municipal governments, it's money in our pockets.
‘I’m just happy to save money,’ says driver Patrice Lampron.
It is money that we will likely put back into the economy. That's the good news.
The bad news is that Canada is a net exporter of energy. As the price of oil drops, so too, do government revenues. That impacts jobs and growth, especially in the oil rich provinces.
If we can produce enough here to keep it at a decent level, I hope it screws all of them.
