Jump to content

Why are gas prices going up?


Recommended Posts

It has gone up again recently to near unprecedented prices, and reports on the news say the price around where i live is expected to go up to about $1.20/L by Christmas. Heck, usually it seems that prices generally go up in the summer months and then dip down when the winter hits, but the prices just keep rising!

So what is the current reason for this, if anyone knows?

Link to comment
Share on other sites

  • Replies 75
  • Created
  • Last Reply

Top Posters In This Topic

It has gone up again recently to near unprecedented prices, and reports on the news say the price around where i live is expected to go up to about $1.20/L by Christmas. Heck, usually it seems that prices generally go up in the summer months and then dip down when the winter hits, but the prices just keep rising!

So what is the current reason for this, if anyone knows?

A) not sure about your season observation...

B) My guess is that the futures market is betting on a long cold winter and heating oil stocks are putting pressue on the range of oil based fuels

Link to comment
Share on other sites

We'll probably get the usual excuses from the oil-soaked cabal of money grubbing scum,however,I have no idea...

I do know that the stations in Beamsville were at about $1.05 on Sunday per litre and Monday morning they had shot up to $1.09...No explanation!

I have noticed that tere seems to be a spread in the price per barrel of oil and the price at the pumps that seems to be a 25 cent to 30 cent constant.For example,if the price per barrel is $80.00 then I've found that the price at the pumps is around$1.05 per litre...That's how it seems to be in my area...

Edited by Jack Weber
Link to comment
Share on other sites

First let's remember that gas prices would be about 10 cents lower if not for the HST. Second, OPEC has cut production a couple of times over the last year or so. When you combine that with economies that are now not shrinking, but slowly growing, there will be a natural price increase coming anyways. Until production is increased some, or demand goes down.

Link to comment
Share on other sites

Fine, compare it to gas prices under the PST+GST and then look at gas prices with HST. They are still higher and will go higher yet.

Without the HST, gas prices would be about 10 cents lower. And gas prices aren't as high as they were a couple of years ago. His claim was that they're at unprecedented prices. That's simply not true.

Link to comment
Share on other sites

Why do they raise prices? Because they can!

It's Christmas shopping time! People HAVE to drive more! So they have to buy more gas, even if it's more expensive. Who can cut back on driving when they have to do their Christmas shopping?

It's the same reason gas prices go up just before a long weekend.

The price of crude really has little to do with it. We have only a few refineries in this country. No matter how much crude is in tanks only so much can be refined at one time. The amount available doesn't change all that much. If there was excess supply we would see more price drops. Instead, Instead, it's very easy to throttle back a refinery or two to put a crimp in supply and drive the price up. There aren't that many different oil companies, either. They all buy from the same few refineries. So they basically can do whatever they want with the prices. There's no formal conspiracy, just a few guys who all understand that if they all do things the same way they all get the maximum profit.

It's called an oligopoly. Our governments know this but they like the situation too! After their fixed taxes on each litre they have sales taxes on the retail price. As it goes up so does their take!

Their only checks are political. They know that if they gouge us too badly they can mess up the economy or cause pressure on the ruling party of the day. It seems that every time prices soar in too big a jump the economy goes into recession. Is it a coincidence that just before the start of this present global recession we saw gas prices spike up to $1.40 per litre? Few economies are strong enough to handle that kind of shock.

Watch for prices to fall between Christmas and New Years. That's because except for the actual Holiday dinners people tend to stay home and relax. Gas sales will drop and they will lower the price to try to encourage consumption.

This has been going on since at least the mid 70's. It's nothing new.

Edited by Wild Bill
Link to comment
Share on other sites

Why are gas prices going up?

Because we are getting free oil from Iraq, thanks to Gulf War :D

Actually OPEC raised prices and here our Fifth Column like Greenpiss et al are helping them. We need more pipelines to North and more drilling, not less.

Link to comment
Share on other sites

Why are gas prices going up?

Because we are getting free oil from Iraq, thanks to Gulf War :D

Stirring the pot again? :P Anyone who looks into it knows that the US never got a drop of oil out of conquering Iraq. The countries who actually benefited were Russia and China.

Link to comment
Share on other sites

I have noticed that tere seems to be a spread in the price per barrel of oil and the price at the pumps that seems to be a 25 cent to 30 cent constant.For example,if the price per barrel is $80.00 then I've found that the price at the pumps is around$1.05 per litre...That's how it seems to be in my area...
Jack is right.

World oil prices are around US $85/barrel. Bloomberg

As a rough guide, you can add about 30 to the US$ price per barrel to get the Cdn cents per litre. Local taxes will alter the calculation.

----

BTW, when the price of oil goes up, there are both losers and winners. As a consumer, you lose. But if you own energy companies in your portfolio, or have any family member working in energy, you benefit. As Canadians, we generally benefit when oil prices rise. We are an energy rich country (electricity, oil, natural gas, uranium) and the world values more greatly what many of us have to sell.

You may pay more at the gas pumps but that's like Megan Fox complaining about the high price of cinema tickets.

Edited by August1991
Link to comment
Share on other sites

World oil prices are around US $85/barrel. Bloomberg

As a rough guide, you can add about 30 to the US$ price per barrel to get the Cdn cents per litre. Local taxes will alter the calculation.

----

BTW, when the price of oil goes up, there are both losers and winners. As a consumer, you lose. But if you own energy companies in your portfolio, or have any family member working in energy, you benefit. As Canadians, we generally benefit when oil prices rise. We are an energy rich country (electricity, oil, natural gas, uranium) and the world values more greatly what many of us have to sell.

You may pay more at the gas pumps but that's like Megan Fox complaining about the high price of cinema tickets.

Exactly.

Gas prices are going up because of rapid GDP growth in emerging markets with a new and expanding middle class. These countries are getting out of being poor and are in the middle of the process of becoming like the rest of the western world. I'd say the majority are where England was in the mid to late 1800's.

These countries have a resource that the western world doesn't have and that's cheap labour. As a result there is a massive capital investment in these countries to produce goods for us and in time themselves. All this leads to a consumption in resources, which is partly why Canada did well in this recession.

For a country that produces vast types of commodities for export, why would we be stupid and devalue our exports?

Would Canada be better off if the developing world quit growing and buying our exports so people in Eastern Canada can have cheap gas?

Link to comment
Share on other sites

The days of having a stable and affordable energy supply are over until we get serious about energy research and development.

The price isnt really even about current supply and demand... Its based on predicted demand and exploration yields. Youre paying what speculators think it will be worth in a few years based on how much oil is being found and predicted global economic growth.

We are gonna be on the losing end of that forumal pretty damn soon.

Link to comment
Share on other sites

The days of having a stable and affordable energy supply are over until we get serious about energy research and development.

It's still both stable and affordable, for now. Sure the price fluctuates, big freaking deal. The cost of gas for my car is still a tiny fraction of the cost of the car itself and the monthly insurance payments.

Link to comment
Share on other sites

Why are gas prices going up?

Because both oil and refinery are controlled by international big bosses. I think even the governments are controlled by those big bosses. That is called globalization. The big bosses want more money. And the wall street margin buyers want more money too, they take profit by control the future price of goods. Guess who will pay money to those guys? you and me. The robbery is happening everyday, a very small group of people rob from all people all over the world, the laws protect them.

Link to comment
Share on other sites

Well perhaps you should start noticing Dancer, prices just jumped over .04 cents a liter overnight in this area.

Which area is that?

It seems to have fallen a couple of cents here...

http://www.torontogasprices.com/

Edited by M.Dancer
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Unfortunately, your content contains terms that we do not allow. Please edit your content to remove the highlighted words below.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Tell a friend

    Love Repolitics.com - Political Discussion Forums? Tell a friend!
  • Member Statistics

    • Total Members
      10,755
    • Most Online
      1,403

    Newest Member
    Joe
    Joined
  • Recent Achievements

    • CrazyCanuck89 went up a rank
      Explorer
    • Venandi went up a rank
      Community Regular
    • Matthew earned a badge
      Dedicated
    • Fluffypants went up a rank
      Proficient
    • Joe earned a badge
      Conversation Starter
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...