Lower gas prices good for Quebec economy

Lower gas prices good for Quebec economy

Quebec City (Quebec) 23 January 2015 – According to Quebec’s Finance minster, Carlos Leitāo, the fact that gas and oil based products are cheaper can only result in consumers spending more money elsewhere, which can only be good for the overall economy.

If the consumer and businesses (especially those using oil to heat) pay less for their monthly operational requirements, they will obviously have more money to invest or spend on other commodities which should help the retail and restaurant sectors together with the companies that produce those items.

The fact that the dollar is lower is also a good thing for companies who export their goods to the US or elsewhere. As long as the lower barrel prices remain stable, the better the economy will sustain itself. It’s partly psychological, and partly fact but, when we spend less on gas our thinking tends to be more open to spending.

Think about a company for example, who has a float of vehicles, how much less it will cost them to operate those vehicles and what they could do with the extra money.

M. Laitāo mentions on the other hand that the present circumstances may only be temporary and that the government will still have to maintain its budget cuts to reduce the deficit to zero by 2015-2016.

The transfer payments from Ottawa for now will remain the same but, if the trend continues, in two or three years, there will be less money from Alberta to compensate for the loss of energy revenue which could have an effect on those transfer payments.

For now things are stable but, if the price of oil goes back up, things could change drastically which is why consumers should still be cautious with that extra change in their pockets.

Categories: Business, News

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