- Heating and stove oils show an added 14/100ths of a cent.
- Diesel shows 3/10ths down, and...
- Gasoline shows 9/10ths down.
I'll have the final numbers tomorrow night, so be looking for that post late in the evening...
Overall, it's not a bad budget considering the investment of two badly needed schools in the St. John's area and the investment into six new ferries for the south coast of the province, but this round of tax cuts bothers me along with the government projection of an average of $83 bucks a barrel for crude oil.
So far this year, we have been warned about increasing interest rates and some areas of the world still facing an impending financial crunch, both of which will impact consumer spending. Look at the situation with Greece and impending problems with the Euro. The Bank of Canada has already set the Canadian ball rolling on higher interest rates increasing rates by 6 basis points.
Doesn't seem a lot but the warnings are already out there that they'll go nowhere but up from now on. This means that consumers are going to prioritise their spending with increasing interest rates on things like new homes and credit card expenditures, there's going to be a shortfall for some people out there. If they don't spend, the high price of fuel will "enforce" conservation and that will make the price of oil drop.
High prices impacted consumer spending that partially lead to crude oil's price collapse in July, 2008. With a government so heavily dependent on oil revenues, that should be worrisome.
For some reason, I don't think the word "risk" was brought out by anyone. I guess it is now.