UP UP UP AND UP!

[Toro]

Won't happen, oil prices are already over-inflated. The cost of oil is way beyond its worth, and if you look at options and futures prices, this is reflected by those that actually understand how markets work.

Dude, I've worked in financial markets for over a decade. Oil closed at $67 on Friday. Whether or not its inflated is irrelevant today. Its all about supply and demand. THAT'S how markets work.

Oh, and again, its ridiculous to give people a subsidy for energy when you're already taxing the hell out of it. The solution is pretty simple if what you want is to lower energy costs. Simply lower the energy taxes that are currently imposed.

[mirror]

Reality behind the oil game

I always enjoy reading Dyer's take on Planet Earth's politics or Planet Earth's events. He has the ability to cut through a lot of the hype which are attached to most news strories.

[Toro]

That's a good article mirror.

Here's another. Something like 2-3 million barrels a day are being traded by hedge funds. Total daily demand is 85 MM bbl/d

[mirror]

I keep hearing a persistent rumour that the Saudi oilfield reserves may not be all they are cracked up to be. If so it might be an additional reason for the spike in prices.

[Canuck E Stan]

Here's what John Williamson's of CTF says about what the government is doing about the high price:

While drivers have been suffering, the soaring pump prices have been a boon to government coffers.

According to the Canadian Taxpayers Federation, the government collected $4.5 billion in combined federal gasoline and diesel taxes in fiscal 2004-2005.

As well, between fiscal 1996-1997 and 2004-2005, GST revenues from gasoline sales rose from $909 million to $1.2 billion -- a 31% increase.

The CTF estimates that at current gas price levels, the feds are on track to pocket an extra $175 million this year, bringing total annual GST gas revenues to more than $1.35 billion.

"Canadians unhappy about gas prices should blame the government -- particularly the rascals in Ottawa -- because they have the ability to lower taxes," notes John Williamson, of the Canadian Taxpayers Federation.

"With crude prices and consumption predicted to climb, it is time for the federal government to give motorists a break at the pump." He notes that gas taxes represent between 30% and 43% of the pump price, depending on the province.

The CTF is urging Ottawa to cut gas taxes by 5 cents a litre.

[Black Dog]

While consumption taxes are regressive, I have little sympathy for people who complain about high gas taxes, simply because there are alternatives available.

As for alternative fuels, I think any such alternative would merely be a stopgap.

[cybercoma]

As soon as the government lowers the gas tax, the corporations will increase their profits. We won't save that money; we might as well be giving it to the government who will return at least some of the money to us in services whereas the corporations will just keep it.

[Toro]

As soon as the government lowers the gas tax, the corporations will increase their profits.  We won't save that money; we might as well be giving it to the government who will return at least some of the money to us in services whereas the corporations will just keep it.

<{POST_SNAPBACK}>

Wouldn't happen. Gas retailing and marketing is a low margin, highly competitive business. Prices would fall.

[Toro]

I keep hearing a persistent rumour that the Saudi oilfield reserves may not be all they are cracked up to be. If so it might be an additional reason for the spike in prices.

<{POST_SNAPBACK}>

Saudi Arabia has about 500,000 barrels of spare capacity - if that - though they say they have more. That's pretty common knowledge in the market.

[THELIBERAL]

RE::I am making this topic to here your oppinions and issues and suggestions in the gas prices and what the federal, provincial governments can do to bring prices down.

To here?

[canadian_conservative]

RE::I am making this topic to here your oppinions and issues and suggestions in the gas prices and what the federal, provincial governments can do to bring prices down.

To here?

<{POST_SNAPBACK}>

Instead of correcting my spelling Libral you should right out your oppinion Considerign I am one of the ones defending you against an idiot who posted a topic way off this disscussion board that wants you banned you should be nice to me.