Gas glut saving Manitoba drivers big at the pump
CBC News | Posted: December 3, 2014 11:56 PM | Last Updated: December 4, 2014
Small businesses, Manitoba government stand to gain big savings from slump in oil prices
A drop in oil prices may be hurting the oil patch, but it's also helping Manitoba drivers, the province, and local businesses.
A global glut has plummeted gas prices to 98 cents per litre in Manitoba.
"I was surprised! Actually, I went for a vacation; it was like at $1.08, $1.09 two weeks ago and it's 98 cents! It's been a while to have these kind of prices," said Lawrence Lorenzana.
Lorenzana drives a Toyota Corolla. He can usually fill the tank for around $45.
"Right now $33 dollars! It's great! Saves a lot of money," said Lorenzana.
Seeing gas back under $1 is nostalgic for Winnipeggers like Peter Scachnik.
Seeing gas back under $1 is nostalgic for Winnipeggers like Peter Scachnik.
"A gallon of gasoline used to be 18 cents," said Scachnik. "I just hope it lasts until next July and even more."
How do you stand to save?
Industry forecasters have said the low rates could stick around all winter long, which would result in significant savings for drivers.
At roughly $0.98 a litre, where prices are currently sitting, smaller cars could end up saving around $16 a tank.
A mid-size SUV is saving around $19 a tank right now, with pickup trucks filling up for just $44 at the pumps.
If conditions hold, filling up once a week will save small car owners about $832. Meanwhile, SUV and truck owners are looking at a savings of around $988 and $2,200, respectively.
Some Winnipeggers already know where those savings are headed.
"Spend it on Christmas presents shopping. The good stuff," said Kenneth Laurie.
Gas glut good for government, business
Small businesses like Roy's Florist stand to incur major gains from low oil prices. The florist will save big on gas, as it is constantly filling up delivery vehicles, which do up to 25 deliveries a day.
The Manitoba government is also saving $15,000 a day on gas for its fleet of vehicles.
And although jet fuel is also experiencing a dip in price, airline industry analysts aren't predicting holiday flyers will see that translate to cheaper ticket prices.
Ticket prices could go down over the course of six months, but demand is too high right now for consumers to see savings in the short term.