Whats Wrong With the Consumer Enjoying Cheap Gas
There is a great deal less money flowing into the federal and provincial coffers as a result of the major drop in the cost of a barrel of oil, but it is hard to feel any empathy for government when suddenly the cost of fill up has dropped by about 30%.
The government may argue that it needs the money to operate the country , all the while in the past saying they did not like to interfere in the cost of fuel because it is market driven. So much for that line.
The drop in the price at the pumps to as low as 89.9 cents a litre at Costco this past week, frees up about $1,000 dollars a year to the average family in BC.. That means they will have extra money in their pockets to spend.
Governments on the other hand don’t like this from the simple point that they will need to cut spending, or worse, show a deficit, and during an election year that is the last thing the Feds want to go to the people with.
Some will argue that the price of a barrel of oil is market driven and governments should not regulate the price. Fair and well , but who is the biggest beneficiary in the price of that product? Governments come quickly to mind , and where else is that shown in the economy?
The price of a barrel of crude is around $54 dollars today, down from a high of about $107. More over the price of natural gas has dropped by about 30% and the consumers will be looking for their monthly bills to drop here also, which again will free up money for the consumer.
There is all sorts of speculation as to why the price of oil has dropped so dramatically. From the Canadian consumers point of view, who cares? We are enjoying a break in the cost of taxes , the desire by major oil to gouge the motoring public , and low and behold the money is flowing to our pockets. It is hard to argue with that.
I’m Meisner and that’s one man’s opinion
Comments
I just hope that the government sticks to its original line of not being willing to interfere in fuel pricing.
Ya I’m just glad to save money! I hope it goes as low as those prices we had in the 2000s. The more money we save the more we can buy other things or better yet, pay down debt. The government is a crock and you know something if the government released all its dirty secrets in the length of a rope it’d probably stretch around the world a thousand times. Those liars!
“Governments on the other hand don’t like this from the simple point that they will need to cut spending…”
Yeah, that will go over well with the over bloated, over paid and under worked civil service.
There are an awful lot of pension funds out there that rely heavily on oil stocks. That extra 1000 bucks a year is diddly squat compared to what they’ll be losing.
WONDER when Fortis will react to these low prices and start lowering our heating bills… Knowing them, they’ll probably raise the delivery charge to make up the difference.. they always find a way to get us
On another topic… WHY is it cheaper to fly from Van to PG than it is PG to Van??? We have better service up here??? hahaha Just looking at Westjet seat sale
The fixing of oil prices right now is an effort to derail Vladaschmear Poutine’z potential stranglehold on Europe. Once that operation has duly castrated VP you will see gas ~$1.50/litre at the pumps by summer. History tells us every time gas goes down a cent it will go up 2 or more to re coup any loss.
People will get to keep those savings. The government will “need” to make up for the loss in revenue, and that will be with higher taxes. The same people laughing now will sure be whining later. I hope the price of oil rebounds soon.
The 84 cent dollar kind of sucks for some purchases but I guess its all part of the package.
From the article: “We are enjoying a break in the cost of taxes , the desire by major oil to gouge the motoring public , and low and behold the money is flowing to our pockets. ”
I’m not sure why Ben and others are stuck to the notion that oil companies are ‘gouging’ the public, yet not have this same notion for food or other consumer goods.
We are not entitled to cheap gas. Right now, it is cheaper. Enjoy it while it lasts, because it likely won’t.
The idea that there is an oil war on to put Putin out of business is dispelled in an article by Gwynne Dyer in the Straight.http://www.straight.com/news/799016/gwynne-dyer-slow-moving-conspiracy-oil-war
Cheers
Might be easier to believe a conspiracy theory easier than it is to believe a barrel of oil is suddenly 50% cheaper.
I don’t understand the break in taxes mentioned, as the taxes we pay on fuel stay the same. What is funny is the carbon tax scam you all ignore. Cheaper fuel I would think relates into more fuel used, relates into more carbon tax paid along with more c02 produced worrying those scared of the plant fertilizer. Fiberals getting more tax for their buddies.
Fortis buys gas ahead of time to help stabilize prices that is why prices don’t fall right away. Don’t like it there are alternatives. But those haven’t worked out so well.
The break in taxes would refer to: all the income taxes that the oil patch workers pay. The loss of wages for the oil patch workers will also result in the loss of some sales taxes as belts are tightened. Also the fees and royalties payed to the governments by the oil companies. The corporate taxes paid by those companies. The sales taxes on gasoline. And so on. But go ahead and believe that it won’t affect you negatively. Yay! Cheaper fill ups!
Good post, News2me. You hit the nail on the head.
It’s always interesting when those on the ‘right’ make the exact same argument as those on the ‘left’, yet continue to insist there’s a difference in policy between them.
Oh you mean Alberta could become a have not province? All those laid off oil patch workers can help build Site C! I don’t feel sorry for those oil companies one bit!
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