Now We Get An Idea Of Who Was Gouging Us At The Pumps
The federal Consumer Affairs are saying that Canadians are saving about 44 million dollars a day on their gas purchases. That leads one to a few questions. The population of Canada is just slightly more than 35 million , meaning that the average household , based on a family of three is saving about $3.60 cents a day or $1300.00 dollars a year . That figure is based on a price of a barrel of oil selling for just under 60 dollars.
Now the second question is, just how much money are the multinational gas companies making at say $110.00 dollars barrel, given that they are saying they are still able to operate at the sixty buck price and make a small profit. Have we been gouged as most Canadians have suggested over the past many years when it comes to filling up. Well the answer lies somewhere within those questions.
We used to get the comment when we complained about the high price of gas in this region that well we don’t make any money on the sale of gas, the service stations have to rely on the sale of the condiments in order to make a profit. Well one wonders then who has been getting the money, if we are getting a break of 44 million a day were was that money heading in the past , we do know it was to the up the ladder from the local service station.
We also know who is one of the biggest beneficiaries of the price of a barrel of oil and the increase in price of a litre of gas, the government , of all shapes and sizes. As the price went up, so did the take, so there was no attempt to put a stop to the gouging going on, after all the federal and provincial governments were getting a cut of the action. Then there are the provinces, who say the royalties will be down, and that will cut down what government will be able to bring to the people. One would think that by providing an extra 13 hundred dollars a year to every family that in itself would stir up the economy. My reasoning must be amiss.
So apart from Russia who they ” say” cost them about $80 dollars barrel to produce , who has been hurt the most. That 44 million a day has to have been going somewhere, who got it?
Up in the oil patch there are some companies that are curtailing expansion, because the costs for a new facility are much more than the existing plants. That is to be expected. the established companies are not mothballing, so the magic number isn’t 60 bucks.
One gets the distinct feeling that the users of fossil fuels the world over have been taking it on the chin, by the multinational producers one, followed by our own governments . We have been waiting all these years for the government to step in and stop the gouging by the industry, it’s been a long wait .
I’m Meisner and that’s one man’s opinion.
Comments
It’s not just the big oil guys or government gouging us, any company that charges a fuel surcharge should have stopped that months ago not the meager few percent that they did dropped. Airlines, ferries, shipping companies have some explaining to do. But, because we let them do it, they will continue to do so.
“One gets the distinct feeling that the users of fossil fuels the world over have been taking it on the chin, by the multinational producers one, followed by our own governments . We have been waiting all these years for the government to step in and stop the gouging by the industry, it’s been a long wait .”
Sorry Ben, you’re missing the mark on this one.
While we’re waiting for the government to regulate gas prices, what other industries should the government step into to regulate pricing? After all, the government benefits from rising prices on any consumer good that is taxed. Why focus just on gas?
Remember all the stores saying they would have to increase prices due to higher shipping costs when gas broke $1.00 per litre…haven’t seen anything drop in price now that it’s so low.. Gouged again
A lot of the vegetables are the same price per pound. meaning that cost of transporting and distributing is outstrips the cost of producing the vegetable, thus it is driven by what will the consumer pay.
I think we have known for a long time we have been bent over. with the multinational oil companies and the government. Truly, can we expect the government to do any thing about prices on fuel, when their hands are just as dirty as the multinational oil companies.
Ironically price of oil drops 45%, Pump prices fall 15%, If you think that the vertically integrated oil companies are loosing money think again, they are making more money now than they had in the past. Their not making it coming out of the ground, their making it when its being pumped into the vehicles. The sad thing about it is, the Canadian government gasoline/fuel tax, and the GST at the pumps.
We just have to become less dependent on the fuel. Remember 40 years ago, in the winter time all we had were apples, oranges, and banana, occasional grapes in the stores. Now we can get all the fruits all year long. What would happen if we as a society turn around and say, no, to buying these off season fruits, like canteloupes, honeydew melons, star fruit, strawberries, blueberries in January,Feburary. I bet this alone will stop hundreds of millions of dollars being spent on shipping them 6,000 miles. Think how much carbon foot print we save by not buying these fruits.
I heard gas companies can make an additional $1 million a day profit, simply by raising the priice of ga or fuel by one cent at the pumps….
I for one am going to enjoy teh prices we now have, I don’t expect it will be long and the phony excuses why the price needs to go up will begin anew.
Assuming the differential in crude is all profit, i.e. if a barrel of oil went up to $100.00 again, that $40.00 increase in price would be all profit – here’s who would win. The federal and provincial governments would get $10.00 a barrel in corporate taxes. The oil company would have $30.00 left over, to do with as they wish. They could pay it all in bonuses to their managers, but they would run afoul of security legislation, so they can only shift so much to themselves, the rest would be retained by the company to either fund future development, pay down debt, or pay out dividends. Dividends of course, go to shareholders, and shareholders of oil companies tend to be large pension plans, so, what you’ll see is pension plans now suffering to fund their obligations because the price of oil dropped.
That said, I am very happy to take the lower gas prices. I think it’s especially beneficial to us rural people who tend to drive more, than GVRD people, who have public transit options and shorter distances to go. Also, up here we tend to drive heavier vehicles to deal with the winter conditions.
So, I’m sure there will be a corresponding bill to pay somewhere else, but on the balance, I think we’re going to win on this one.
Yes and look who is gouging us at the pumps for diesel fuel in PG. They all stick together on pricing because they can. Diesel fuel $102.9 in Qualicum Beach ,$116.9 in Abbotsford,PG $126.9, Kitamat 144.9 .
You should really stick to current affairs, and out of Economics. If you can’t comprehend how the G7 is driving down the price, trying to kill Russia’s economy, and curtail the middle east… just don’t even start.
pg101
At last I checked the G-7 countries were composed of France, Germany, Italy , Japan, UK, USA, and the European Union.
Not one of the Gulf Oil producers are amongst the group, although it is interesting to note that the OPEC cartel who represent the oil interests had a meeting to agree to reduce the price of crude. Russia doesn’t have a seat on OPEC.
I may not know much about Economics as you suggest, it doesn’t take an economic wizard however, to see that the G-7 does not control oil prices in the world.
Canada would like to see the price of Crude jump that is the theme of my editorial.
As to breaking the Russian economy, what’s in it for OPEC , less money for their coffers to accomplish what ?
50% of the Russian economy depended on oil exports, all their fish in one barrel so to speak, not very smart. Along with western sanctions and with lower oil prices, their economy is tanking. Opec kept production up and along with increasing inventories from the US and Russia and the threat from the oil sands if the pipelines go ahead Saudi Arabia seems wanting to hurt the competion. There are layoffs in the US and North sea.
He spoke what is the effect of that carbon footprint?
Hi Ben, regarding the drop in oil prices… cliff’s notes version below :
Increased supply (fracking boom) and falling global demand – Japan in recession Europe on the Brink, Brazil stagflating. Mix in a new conspiracy to drive Russia into further economic turmoil.. it’s a global effort.
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