The pain of rising food prices is in part being offset by a long-awaited break at the gas pump.
The consumer price index for fresh vegetables increased 10.9% over the 12 months ending November 2015. During the same period, the price index for gasoline decreased by 10.6%.
Consumers this month are seeing the effects of low crude oil prices work their way through the refining process to retail outlets. Adding to the downward pressure on gasoline prices is the typical low demand for gasoline in January and growing supply at refineries. The rate of decline, however, has been tempered by the weak Canadian dollar.
According to GasBuddy.com, the average gas price in Canada was 90.3 cents/L on Jan. 20, down from December 2015’s average of 97.7 cents, but still higher than January 2015’s average of 89.1 cents.
British Columbia sits at the high end of gasoline prices at $1 /L. Alberta is at 76.4 cents/L, Saskatchewan clocks in at 80.2 cents/L, and Manitoba at 84.3 cents / L.
Differences in gasoline prices across western Canada reflect the availability of gasoline supply and the value added taxes applied to gasoline by each province.
– Janice Plumstead is a Senior Economist
Sources: Statistics Canada, GasBuddy.com
