POLITICS - The price of crude oil has dropped almost 20% in the last 3 weeks, but the price of gasoline has barely budged. This isn't the first time this has happened either. When consumers aren't paying attention the oil industry frequently gouges consumers on the listed price.
6 years ago the price of gasoline in Canada stayed pretty relative to whatever the price of crude oil per barrel was doing. If oil was trading at $60 / barrel then the price of gasoline would be about 65 cents per litre. If it was $80 / barrel, the gasoline price would be roughly 85 cents per litre... etc.
But right now the price of oil is roughly $69... which means the price of gasoline should be about 74 cents per litre. Except it isn't, instead its hovering around 98 cents per litre in Canada... a full 24 cents higher than it should be.
The gasoline/oil industry can come up with any number of excuses for this, but the one reason they neglect to mention is that Canadians have become used to the price of gasoline being roughly $1 / litre.
(For any Americans reading this, that would be roughly $3.80 per gallon. Americans should be thankful their government subsidizes gasoline prices more than the Canadian government does.)
Thus Canadians have simply become used to the higher prices... and the gasoline sales industry is basically gouging customers because we've become so used to the higher price.
So even though the price of oil has dropped almost 20%, the gasoline price has barely budged downwards. You could argue the industry is guilty of price fixing, which is ILLEGAL because its considered a form of hoarding, extortion and conspiracy.
But good luck proving that in court.
Environmentalists will be happy however. Higher gas prices means the general public thinks more about alternative energy sources like electric cars or hydrogen cars... as well as public transit and bicycles.
Gas price watcher Dan McTeague says Canada’s oil industry is poorly regulated and tends to “tack on” what he calls “extra mystery cents” to the wholesale price. “That’s why I’m getting a lot of letters from the public. How is crude going down and the price at the pumps not falling as much as they should?”
Oil execs blame the prices on everything from "summer gas", the summer driving season, more fuel efficient cars, more ethanol added, and the Canadian dollar has lost 2.5% of its value recently (as oil prices go down the Canadian dollar usually goes down).
Except what they fail to mention is that oil stockpiles are up, the debt crisis in Greece has put a damper on oil prices, there's no shortage of oil or gasoline right now and the wholesale price of gasoline has dropped significantly.
All things considered the price of gasoline should be a good 20 cents per litre cheaper than it currently is.
After all why should our governments subsidize oil prices billions of dollars per year to keep the prices low when the industry just raises the prices and gouges consumers anyway?
American, Canadian, Toronto & International News Commentary: Spreading Freedom in the Face of Tyranny
May 20, 2010
Subscribe to:
Post Comments (Atom)
Affordable Website Design & SEO
|
Featured Posts
The Sarcasm Symbol
Ever had some confusion online or with your cellphone when someone fails to catch the sarcasm? Well now with the SarcMark you can ge... |
|
Behold, the Scorpion Hydrogen Supercar
CARS - To the right is the future of supercars... it is a hydrogen supercar called the Scorpion. The Scorpion from Ronn Motors in Texas is t... |
|
Documents show Stephen Harper misusing public funds
CANADA - According to 950+ pages of documents obtained by the Canadian Press under the Access to Information Act the Privy Coun... |
|
Pink's Rosie the Riveter
ENTERTAINMENT - What I like about this video is how it meshes different social movements like feminism, veganism, anti-capitalism... |
|
California's Dustbowl
ENVIRONMENT - The photo on the right is a farm in California that has been put up for sale. Its just one of thousands of farms that are n... |
|
Is Steampunk the New Goth???
GOTHIC - Watch out what you see on the subway late at night because while in 2001 you might have seen some pretty freakish goths, by 20... |
|
Do you have enough Ice Water in your diet?
HEALTH - A Calorie (large C) is a measurement of the amount of energy needed to raise the temperature of a litre of water (1 kg's worth) ... |
|
North Korean timeline towards Inevitable War
POLITICS - The following is timeline of events that have occurred on the Korean Peninsula. 1945 - Japan surrenders to the United States a... |
|
Judgment Day is Tomorrow, so sayeth Cult
RELIGION - According to a cult based in California, Judgement Day is tomorrow (May 21st 2011) and Jesus Christ will return to the Earth a... |
|
Sex in Space Forbidden
SEX/TECHNOLOGY - Sex in outer space is a big no-no according to NASA. Not for professional astronauts at least, but the growing numb... |
Popular Posts / Last 30 Days
-
Visit amazon.com/author/moffat to get free short stories and huge discounts on fantasy books by Charles Moffat. Sale ends on October 20th.
-
When was the last time you read a poetry book? If you enjoy poetry by Canadian poets do check out Gail M. Murray 's book: Reflections &a...
-
And the similarities don't stop there. Hitler and Trump have a lot more in common. The context in which Adolf Hitler was elected is...
-
Note About Images: In this post are 7 examples of North Korean propaganda posters, as well as two images of women in the North Korean army. ...
-
Peasant Magazine is seeking submissions for Issue #2. Specifically it is looking for fantasy, historical fantasy, historical fiction an...
-
Talk to anyone who is in the business of selling archery equipment and they will tell you that archery equipment sales are through the roof....
-
CANADA - An increasing number of Canadian soldiers may be using, dealing and becoming addicted to drugs, say reports from Canadian Forces of...
-
HEALTH - Some of you may have heard about the health benefits of being vegetarian or vegan. And there is a tonne of health benefits (and ...
-
By Ai Lung Nguyen - February 2011. TECHNOLOGY - It really boils down to a battle for market share... Facebook and Google have been conduct...
-
Download a copy of the free PDF version by visiting the Peasant Magazine website, or order the 8x11 magazine of Peasant Magazine via Am...
No comments:
Post a Comment
Comments containing links will be marked as spam and not approved. We moderate every comment. If you want to advertise on this blog it is $30 per link.