WE are being gouged so bad. WE really need to organize a protest or something.

Especially when it when down 9 cents in Vancouver and just about every where else in the province ! I am beginning to think the local vendors, as much as they say it has nothing to do with them, it does ! They are getting to be as low as politicians and bankers !

Whoop de doo!

$1.39.9 at Superstore last night.

$132.9 in Fort St. James last week. Their prices never went up 11 cents like PG's did.

Gas war, we need a gas war.

Lets suppose you're a gasoline retailer. You've put up some of your own dough to secure an outlet, either by lease from one of the Big Oil Companies, or by outright purchase.

You've borrowed the rest of the dough from your friendly banker.

To do so you've had to file with him a comprehensive 'business plan' showing that you understand what you're going to be doing, cash flow projections, etc., and how much 'profit' you expect to make.

You get your loan, and open up and buy your first tank truck load of gasoline, wholesale, from the Big Oil Company.

Out of the sale of that tank truck load of gas you have to pay all your expenses, amortize the principal portion of that month's payment of your bank loan, replenish the gasoline you've sold, and, hopefully, make your profit.

As long as the price of gasoline to you remains relatively stable, or drops, you're okay. But if it rises, or even threatens to rise to you, wholesale, unless you immediately move to raise your prices at retail you're going to be paying for your next tankload of gas out of your 'profit'.

In other words, you've just worked that month for far less than you projected you were going to be making.

The Canadian Centre for Policy Alternatives, the 'left-wing' counter to the equally selective data gathering 'right wing' Fraser Institute, may be quite correct on their figures. But they've left out the all important element of TIME.

This is not to say that there never is any 'gouging'. But look around you. How many service station operators are millionaires? And if the business is so lucrative, why then are the Big Oil Companies so anxious to divest themselves of gas stations?

..but it isn't the lowly retailer that sets the prices...


protest, petition, gas war? lol...sure..sounds good! But really are the lemmings up to it?

You've got it right tinyapplecork. I was in a station when the call came through from Calgary to tell the retailer to raise the price. And that would apply to his gas in his underground tanks that went in at the old price.
I will no longer buy gas at one of the oil company outlets, but get it at Superstore where they give $.05 to spend on groceries.

Posted by: He speaks on September 17 2008 7:52 AM
Gas war, we need a gas war.
------------------------------------------------------------------------------------

If these prices don't become realistic soon I believe you will get your gas war.
Only it won't be between the gas stations.
It will be between the people and the oil companies.
When it happens it will be long overdue.

How much longer are you going to put up with it people???

There is no money to be made by the retailer selling gasoline and there never has been. The only ones making money are the oil companies, their shareholders and our honest, caring Govt.

Most of the gas stations don't own the gas. It is the oil company that does, even when it is in the tank in the ground. They just sell the gas and get a amount of at least 5 - 9 cents a litre. Course lately in PG is close to 20 cents a litre.

I too thought that big oil tells the little guy retailer what to charge, I know for sure that is how it works for the 7-11 gas stations.
metalman.

Too many stations in town. Too little gas sold per station to run one at a low markup.

I dont think spreads on gas are even 5 cents per litre anymore, much less 9 cents. I remember when we had gas wars between Supersave Gas and Premier Propane on Victoria Street in the early 90s. Since then big gas has reined in gas wars and they do set the retail price and then pay a spread. I would bet the spread is between 3 and 4 cents per litre. Gas used to be a moneymaker but now under the new model its practically a loss leader. They make the real money selling you a can of coke or whatever.

People are always screaming "gouging." People just dont understand what things cost these days. Ive said it a million times. Go buy a bunch of oil stock and see if you make unreasonable profits. Unless you get lucky timing wise you wont. Take a look at the financials of these companies and you will see that they make a reasonable profit.

Here is the best example. Go borrow to buy stock and pay 8% to 10% on your loan. Maybe the stock pays dividends of 3% or 4%. You better make 4% to 6% capital gain just to break even every year (ignoring tax). Now look at the slide these stocks have been on, about 30% decline in the last 3 months. If you think these people are gouging or making unreasonable profits then I have a bridge to sell you.

Born in BC writes..."Take a look at the financials of these companies and you will see that they make a reasonable profit."
------------------------------------------------------------------------------------

Didn't Exxon state 40 billion in profits here not long ago?
Ya I'd say that was reasonable.
What planet do you hail from?

not defending Exxon, but, how many billions are tied up to earn that 40.
Invest a 1000 and earn 500... pretty dang good investment...invest 1000 earn 1.00... not so good...it is all relative...have to see all the numbers

gas at 1.409 at the Shell on Carney

A former manager at one of the stations informed me they are lucky if they make 2 cents per litre...Folks the retailers make their wages on concession.

I get a good laugh out of how it is defended. They jack the price up the instant the cost of a barrel goes up but when the cost goes down (like it is now) they trickle the price at the pump. THEY ARE GOUGING. I dont' care what level the goug occurs at, the long and the short of it is they are. The government doesn't really care because they get a cut. We, the consumers get treated like a bunch of mushrooms... fed a bunch of crap and kept in the dark. The real icing on the cake is that only way we could successfully protest it is against the law....

I'm in Travism. Anyone else???

When the French had it the stormed the Bastille, for us it should be the Oil company Headquarters. Gas went up overnight 13 Cents and then it goes down only 3 Cents,
something is really wrong here.

Amazing!! I have been saying this for months!! And it is trickled down right to the francise owner!! I dont care what anyone says! Our local gas station owners are Gouging us just as much as the oil companies. End of story!!!

As far as I know only BRAND NAME gas stations are dictated to on price levels of their products. The big oil company gas stations which are so called "independently operated" do so under strict pricing of their master marketer's directions. The rules of franchise, I believe.

The non brand name independent retailers which basically buy a truckload and sell simply follow the brand name pricing--and--as a business--why wouldn't they? I don't think that these non brand name retailers are allowed to get rich from the price of gas which they sell. You would wonder if a refinery would sell to a rogue retailer which undercuts the retail price.

The "gas wars" could only happen when there is a large surplus of refined product available and this is where one of the problems lies IMO.

The refineries throttle the supply of product so that this cannot happen or rarely happens. The only way that the big oil companies can keep control of independent non brand name retailers is to restrict supply to them.
There is no magic to this controlled supply being the obvious means to control pricing.

So why is there no new refineries being built? Because big oil doesn't want this to happen and who would build a refinery if it cannot buy the crude which it needs to operate?
Why would a small oil company provide its crude to a refinery so that it would lead to lower retail prices and lower per barrel prices which it recieves?
There is no magic here either.

The center of this entire worldwide industry being a few mega oil corporations is so large that the few small crude producers, the few independent refiners and the non brand name retailers all must play the game in accordance with what the few big oil companies essentially force them to do.

Strategic pipeline infrastructre, strategic refining and marketing controls is what big oil has developed so well.
Competition is not needed when all play the game properly.

Strategic influences over governments around the world doesn't hurt either.

Anyone out there burn LPG?
What are you paying?

A lot cheaper at Super Save on Victoria St. as opposed to Mohawk on the bypass or Bon Voyage. Guess where I buy mine!