01/09/2015 01:08 EST | Updated 03/11/2015 05:59 EDT

Cheap oil will save drivers $1,500 a year at gas pumps, BMO says

The Bank of Montreal says Canadian drivers can expect to save about $1,500 a year at the gas station this year because of dramatically lower oil prices.

Sal Guatieri, an economist at BMO, calculated on Friday that gasoline prices have declined by an average of 48 cents per litre across Canada since peaking in June 2014. 

According to gas price tracking website, the average price of a litre of gasoline across Canada is currently just over 92 cents a litre.

At current usage levels, that's going to save Canadians $20 billion a year, if it persists, he calculated. "That’s about $1,500 per family, or almost enough for three [Tim Hortons] coffees per day for a year."

In the U.S., the savings are even more dramatic. Guatieri said Americans consume about 138 billion gallons of gasoline per year — more than 522 billion litres. 

U.S. gas prices are down even more than they are in Canada, down $1.51 US from June to an average of $2.18 a gallon. If that holds, Americans would save $208 billion a year, which works out to $1,800 US per household.