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Cost of oil: Who wins?

The Middle East unrest sending gas prices to $1.20 a litre and beyond could prove beneficial to some.

The Middle East unrest sending gas prices to $1.20 a litre and beyond could prove beneficial to some.

For oil-producing provinces that collect royalties from resources, the payoff is considerable.

For non-producers, there is only pain. By some estimates, every $10 hike in the price of oil trims Ontario’s annual economic output by 0.1 to 0.3 percentage points.

As for Ottawa, which is deep in red ink, analysts believe the feds will make off like at least a modest bandit from high oil prices.

“In Canada we do get the income boost. Corporate profits go up, Canadians own stock so their wealth goes up and the dollar tends to drift up, so you can buy more,” said Michael Gregory, an economist with BMO Capital Markets.

All that generates government revenues, he said.

 
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