Gas down to 77.9 at Ancaster Costco

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Oil is slightly lower Tuesday, closing at $49.89 a barrel. And the TSX is lower too. The low price of crude is fueling a warning from the Bank of Canada. It says our post-recession recovery is at risk. The central bank’s deputy governor says cheap oil produces benefits, like putting more cash in consumers’ pockets and helping to cut costs for other sectors like manufacturing. But those gains will be more than outweighed by the losses.

Also Tuesday, TD Bank issued a report saying sliding oil prices could turn the federal government’s promised 2015-16 surplus into a deficit. However, TD also says the deficit estimates are still smaller than the government’s $3-billion reserve set aside for contingencies which would help keep Ottawa in surplus territory. Prime Minister Harper has promised his government will balance the books in 2015-16 despite tumbling oil prices. And it is an election year.

One of the benefits of lower oil is more money in our pockets. And we’re certainly saving more at the pumps.

At the Costco in Ancaster this afternoon, gas was going for 77.9 cents a litre. That’s the lowest prices have been since 2009. Prices are predicted to drop by two cents a litre at some stations throughout the Greater Toronto Hamilton Area (GTHA) overnight and could drop again this Thursday. Experts say the price of gas will continue to plunge with the falling price of oil.