Nova Scotia motorists woke up to a pleasant surprise Friday morning as gas prices dropped overnight to levels not seen since 2005.
The price of a litre of regular unleaded gas in the Halifax area is now as little as 84.2 cents, a drop of 4.1 cents from last week.
"These are prices we have not seen since the second week of January 2005," said Dan McTeague, a senior petroleum analyst with gasbuddy.com.
However, the good fortune likely won't last. Since Monday, there's been a rally in the price of gasoline futures, says McTeague. He expects a one or two cent increase when the Utility and Review Board sets the regulated price in Nova Scotia again next week.
McTeague says the low gas prices are especially notable given gas taxes are higher now and the Canadian dollar is weaker compared to January 2005.
"The fact that prices are this low is a demonstration of how far crude and, more importantly, gasoline futures have dropped given the low demand and the global economic outlook, which isn't very bullish on gasoline and petroleum consumption," he said.
The price of diesel also dropped two cents to 87.2 cents per litre. This is not a low though. Just three weeks ago, it was 84 cents per litre.