Why are gas prices going up?

[M.Dancer]

The Barrie area. We have the usual holiday/weekend hikes around here but this one falls outside of those parameters. It appears the price will jump again tomorrow for the weekend as usual, so, two hikes in one week, nice.

This I have noticed. Gas in my neck of the woods doesn't seem to budge on weekends....the only time I ever notice a drop is the day after I fill up.

[Saipan]

Why are gas prices going up?

Because both oil and refinery are controlled by international big bosses.

Yes, down with the Arabs!

I think even the governments are controlled by those big bosses.

Yes, big bosses can vote 28 times.

The big bosses want more money. And the wall street margin buyers want more money too

...and they buy 6/49 lottery to get millions of dollars for no work.

they take profit by control the future price of goods.

How they do that since any wet back can buy calls and puts options on Chicago Board of Trade?

Guess who will pay money to those guys?

Those who make wrong call or put pay to those who are right.

The robbery is happening everyday, a very small group of people rob from all people all over the world, the laws protect them.

Because some people are not smart enough to recognize the computer scammers from Nigeria, Sao Tome island off West Africa... etc.

Edited December 2, 2010 by Saipan

[Topaz]

Want to know what the Feds say about the gas prices. Here on the Natural Resources website is what they say. http://nrcan.gc.ca/eneene/sources/pripri/whypou-eng.php

[The_Squid]

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

Bravo... I 2nd these sentiments...

They have us by the short and curlies because we allow our government to allow them to screw us... and then gov't benefits... money to campaigns from big business and tax revenue from exorbitant fuel prices...

[bloodyminded]

Bravo... I 2nd these sentiments...

They have us by the short and curlies because we allow our government to allow them to screw us... and then gov't benefits... money to campaigns from big business and tax revenue from exorbitant fuel prices...

Everybody wins. (Well...those who matter.)

[Evening Star]

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.

'We' only benefit directly if we fall into the categories delineated in your first quoted sentence, right?

[maple_leafs182]

Goldman Sachs is predicting higher oil prices for 2011 and 2012.

I can see oil prices going higher in the next few years, just in time for the electric cars to come out. People we be forced to buy electric cars, good thing America just 'recently' discovered Afghanistan had over a trillion dollars in lithium deposits.

And when governments flood the market with currency, that leads to inflation.

[August1991]

'We' only benefit directly if we fall into the categories delineated in your first quoted sentence, right?

Since our governments tax energy sources, we Canadians all benefit in general with higher oil prices.

Ask any Norwegian.

(My only wonder is why we waste this resource at home at a low price rather than sell it abroad for a high price as smart Norwegians do.)

Edited December 3, 2010 by August1991

[Evening Star]

Well, the benefit seems more direct in Norway's case since their oil resources are publicly owned to a significant degree. You're right about taxes but most of the profit from our oil resources would seem to still go to whichever corporations are exploiting them. I guess it depends on whether a privatized system is so much more efficient that our net benefit is still greater than it would be with public ownership.

(Btw, my impression was that most of our oil is sold to the US?)

[Saipan]

(My only wonder is why we waste this resource at home at a low price rather than sell it abroad for a high price as smart Norwegians do.)

Actually oil (like lumber, gold, silver, paladiaum copper, orange juice, cotton, coffe, etc) is sold at world market price. To whoever will buy, at CBOT. See Commodity/Futures in Financial Post, National Post or Globe & Mail. One just needs US$ 5,000 to open an account and start trading.

[Wilber]

Since our governments tax energy sources, we Canadians all benefit in general with higher oil prices.

Ask any Norwegian.

(My only wonder is why we waste this resource at home at a low price rather than sell it abroad for a high price as smart Norwegians do.)

Only GST or HST in some provinces is a percentage of the price. Other fuel taxes are fixed amounts regardless of the price. As the economy improves, demand will rise and prices will go up just like any other commodity. Seems to me that Trudeau's child Petrocan didn't do anything to lower prices when it was a government entity.

Edited December 3, 2010 by Wilber

[AngusThermopyle]

It appears the price will jump again tomorrow for the weekend as usual, so, two hikes in one week, nice.

Well I was right. On the way to work this morning I noticed that prices are now around $1.13 to $1.14 dependinding on which station you use. I'll gas up at the Pioneer just down the road from here since they're still below $1.11, for some reason they're always cheaper than other stations in the area.

[Saipan]

I see lot of people cross the bridge in Sault Ste Marie to gas up at US side. Gas pump at the end of the bridge is veeeery busy

[bush_cheney2004]

I see lot of people cross the bridge in Sault Ste Marie to gas up at US side. Gas pump at the end of the bridge is veeeery busy

How many pennies does that save?

[bjre]

If the total cost of time is one hour, will the saving more than legal minimum salary for that hour?

[GostHacked]

Well I was right. On the way to work this morning I noticed that prices are now around $1.13 to $1.14 dependinding on which station you use. I'll gas up at the Pioneer just down the road from here since they're still below $1.11, for some reason they're always cheaper than other stations in the area.

On the whole you are only saving a couple bucks at best. So a 2 cent difference between the stations is negligable. However on the other end, the gas station chain that is a couple cents higher overall will make a lot of money across the country.

[GostHacked]

How many pennies does that save?

For the time and effort, it does not make much of a difference.

[Saipan]

How many pennies does that save?

Could be up to thousand.

In any case far more - and in much shorter time (like 10 minutes)- than shopping for cheaper gas among different pumps, in say Toronto.

Not for a busy lawyer or doctor. Housewife or unemployed, definitely yes.

[bush_cheney2004]

....Not for a busy lawyer or doctor. Housewife or unemployed, definitely yes.

OK....don't forget cigarettes!

[AngusThermopyle]

On the whole you are only saving a couple bucks at best. So a 2 cent difference between the stations is negligable.

While I certainly do realise this for me it isn't really just about the money. Its almost like a game, and since this station is right on my way home it doesn't impose any undue detours or delays on me. I also let the tank run low before I fill up. Just part of the strategy of the game.

[Evening Star]

Seems to me that Trudeau's child Petrocan didn't do anything to lower prices when it was a government entity.

It might not lower prices but it would seem that a well-run Crown oil corporation could generate significant government revenue for a time.

In the long run, we should be looking to wean ourselves off oil dependency anyway and public control and planning could help here.

[Jack Weber]

This is interesting...

http://news.sympatico.cbc.ca/consumernews/gas_price_volatility_result_of_guerrilla_warfare_tactics/6f844060

Some of us might be old enough to remember when there was a "gas war" on street corners where the ownerws of the fas stations would try to outdo each other by lowering the prices on gas...

I have never heared of gas wars with the price going upward,however....

[August1991]

It might not lower prices but it would seem that a well-run Crown oil corporation could generate significant government revenue for a time.

Canadian governments collect royalties from natural resources. Government bureaucrats are generally bad managers but they are good tax collectors. I think natural resources are better in private hands, with government royalties.

When world oil prices rise, provincial governments in general gain more revenue. In addition, when oil prices rise, electricity and natural gas or other energy sources become more valuable since industries seek alternatives. Except for solar (Canada has little sunlight), Canada is rich in energy - hydro in particular. (An accident of glaciers - Russia, Norway enjoy a similar luck.)

---

Evening Star, I think we Canadians in general benefit more from rising world oil prices. 1) Many Canadians work for energy companies. 2) Many Canadians own energy stocks. 3) Canadian governments collect energy royalties. 4) A higher Canadian dollar makes imports cheaper.

Consider two situations: Canada without oil and Canada with oil.

If world oil prices rise, in which situation - all things considered - would you rather be?

[Wild Bill]

This is interesting...

http://news.sympatico.cbc.ca/consumernews/gas_price_volatility_result_of_guerrilla_warfare_tactics/6f844060

Some of us might be old enough to remember when there was a "gas war" on street corners where the ownerws of the fas stations would try to outdo each other by lowering the prices on gas...

I have never heared of gas wars with the price going upward,however....

Gas wars are impossible today, Jack. That's because there are only a few refineries. All the gas stations of all brands are buying from the same few sources. Those few sources set the price. When everyone has the same cost and their margin is so low there's just no room for any price wars.

More companies with more refineries would mean more competition. Sooner or later one or another company would have an excess of refined gasoline on hand and would drop the price to move it out of their tanks.

Canada has always avoided competition on the big things. The government has always made some kind of deal so that a small group of companies enjoys protection from "those big foreign guys who would just wipe us out!" 'Foreign guys' of course really meant 'Americans'.

That's why we still have only a few banks, a few insurance companies and a few gas brands. With the banks, ever wonder why ING is an internet bank in Canada, with no storefronts? It's because our banking regulations won't let them be anything else. If those regulations weren't so old they would have included the internet as well!

The trade-off is supposed to be that the government will keep some control over those they've given protection. Like car insurance companies who have to apply to the government for a rate increase. Of course, a government has no idea if a rate is justified or not! They get snookered every time and thus do we.

Canada is a much bigger nation today than we were when these systems were first implemented. Many of our businesses are competing in other countries all the time. Maybe we should open things up at home. It might hurt a few fat cats but a little 'laissez-faire' would sure benefit us consumers!

[Topaz]

There is a solution when the gas wars are the station themselves. Just go to the lower priced station. Of course, this is easier to do in a small city or town, I don't how you could do it in a city like Toronto.