something wrong here with gas prices?

[shack]

The biggest joke is that the gov't claim the gas companies do not fix prices but they went after the chocolate bar companies. As if the price of chocolate has such an impact on our whole economy and day to day costs.

Once again, the gov't are a bunch of douchebags.

 

[blackmoon69]

they dont care at the consumer all they care is how to make the money.

 

[21pro]

July 11th
price of a barrel of oil- $147
price of a litre of gasoline- $1.36

Sept 2nd
oil- $101/barrel
gas- $1.279/litre

a 30% price drop in crude but only a 4.5% drop in gasoline?

consider this too:

in Buffalo during that same amount of time:

July 11th price per gallon was: $4.27

now the PPG is $3.51 or an 18% drop in prices stateside! not the 30% drop in crude, so still a little pricing inefficiency, but not the same difference we're noticing here in Canada.

Canadian dollar has fallen by about 12% as well.

no. not true.
the Canadian dollar was worth 99cents US at that time and is worth 94cents today. hardly a noticeable change at only 5%.

 

[mmouse]

I was in Hunstville on Sunday and gas was $1.20. In Toronto it was $1.28. I don't believe Hunstville is any closer to refineries or has a more competitive market. This is surely an indicator of a fucked price system.

 

[21pro]

agree. mmouse,

on the long weekend, I saw $1.19 in Parry Sound and thought it'd be cheaper once I get into the gta and was surprised to see $1.29.

 

[carguy34]

Oil was down again today but guess what the gas price will be tomorrow ...http://www.mcteague.ca/WebPages/gas_price_chart.htm
lol

 

[Mencken]

Gas prices have a larger tax component in Canada than in the US...therefore the percentage changes will be lower here than in the US relative to changes in crude prices. That much is just math.

Part of the reason the gasoline price goes down more slowly than it goes up is that margins (refiners margins, etc) get squeezed on the way up...by competition no less. And they try to recover some of that on the way down.

As for competition in Canada - it varies from city to city, and you will certainly see different prices from one place to the next. But typically within a given market the retailers will follow some price leader and basically match their price - if they have to they will drive around and see what everyone else is charging and make theirs the same. There is no law against that. The laws apply if there are phone calls, agreements to always do this...etc. And no doubt that happens too...but overall they will compete by at least matching whoever moves first.

The other factor in all of this is that refined products such as gas, diesel, heating oil, all have their own supply/demand/inventory figures, and sometimes there may be excess of one product and shortage of another...and refiners are more or less fixed in what they can produce from a barrel of crude. So prices will vary between the various products of crude oil.

The current melt down in crude prices will have an effect on gas prices at some time...moreso because demand is down a lot and refineries are not running at full capacity. Once hurricane season is less of an issue I expect gasoline may drop...hopefully crude prices do not drop a lot more or the TSX may go through the floor.

 

[mmouse]

But typically within a given market the retailers will follow some price leader and basically match their price - if they have to they will drive around and see what everyone else is charging and make theirs the same. There is no law against that. The laws apply if there are phone calls, agreements to always do this...etc. And no doubt that happens too...but overall they will compete by at least matching whoever moves first.

I'm not sure this is a "competitve market" - how many other products are priced like this? If station A puts up the price, it knows every other station in the market will follow. So, why not just put up the price whenever I feel like it. The whole point of competition is that one player is always going to break away and force the price down to corner more market. Doesn't seem to be happening here.

 

[pimpin_civic]

here's the real funny thing...we buy back our own gasoline from the US

aint that funny?

Here's what's happening: Gas companies are doing their level best to profit out of us...the gov't doesn't want to do anything because they make a huge cut on taxes....

but it all comes down to this....with the advancement of technologies (electric cars, hybrids, hydrogens, and solar-powered cars), gas companies are trying to milk us until everyone switches over to a new technology. Once everyone does, who's gonna need gasoline?

 

[21pro]

Gas prices have a larger tax component in Canada than in the US...therefore the percentage changes will be lower here than in the US relative to changes in crude prices. That much is just math.

though, percentage based taxation, which it is on gas in Canada, would create a greater volatility than the base cost (crude prices) for production... if this were the cause of price movements or lack thereof, you'd bet you could expect quick and sudden percentage pullbacks in gas prices that are greater than the swings in a barrel of oil. so that math doesn't make sense as far as explaining why gas prices are quick to rise and DON'T really fall.

however, I think your second explaination makes sense. though, from what I learned in economics is that this is ironclad proof that gas prices are fixed, not commoditized as they should be by law.

 

[enduser1]

Lets see how much gas prices drop next week as the USD is still going strong and OPEC will not be cutting production.

EU

 

[enduser1]

That must be why my favourite station is offering a tube of Vaseline with every fillup starting next week!!...hmmmmmmmm...

We're Gonna be screwed. EU

 

[carguy34]

Just went in to Esso to put gas and noticed that the price of premium gas is now 13 cents more than regular !!! used to be 10 cents, then 12, now its 13 !!! So I went to the counter and asked the guy why premium is now 13 cents more ?? He looked at me and then looked at his computer and just shrugged his shoulders and said he didn't even notice that it was 13 cents now. I ended up swearing at him ( I know it's not his fault ) and calling them a bunch of criminals. I also noticed a pair of binoculars behind the counter, I guess they are getting alot of "gas and dash" !! lol serves them right !

 

[S.C. Joe]

Gas over here at 2/3 of the stations went up 30 cents a US gallon over night to $3.95...but oils been going down in price The all time high was like $4.35 a gallon I can recall over here-for 87-...thats when oil was $140+ now its almost $100....but theres no price fixing huh ?

 

[rayden]

What gets me pissed off is there are 2 elections going on, in the US and now in Canada and the media is not pounding on the candidates about the gouging and what they are going to do about it. OH HUM we'll just take it in the ass.

 

[shack]

Just went in to Esso to put gas and noticed that the price of premium gas is now 13 cents more than regular !!! used to be 10 cents, then 12, now its 13 !!! So I went to the counter and asked the guy why premium is now 13 cents more ?? He looked at me and then looked at his computer and just shrugged his shoulders and said he didn't even notice that it was 13 cents now. I ended up swearing at him ( I know it's not his fault ) and calling them a bunch of criminals. I also noticed a pair of binoculars behind the counter, I guess they are getting alot of "gas and dash" !! lol serves them right !

I usually get mid grade and like you I'd noticed how it was always 6 cents more per litre than regular but all of a sudden it was now 7 cents higher.

Well, today I filled up and regular was at a "bargain basement" rate of $1.22 but guess what? Mid grade was now $1.30, 8 cents higher. Fucking bastards. I am only filling up with regular now starting today.

 

[carguy34]

I usually get mid grade and like you I'd noticed how it was always 6 cents more per litre than regular but all of a sudden it was now 7 cents higher.

Well, today I filled up and regular was at a "bargain basement" rate of $1.22 but guess what? Mid grade was now $1.30, 8 cents higher. Fucking bastards. I am only filling up with regular now starting today.

I guess because they don't post the prices for mid and high grade on their signs like they do in the states, they think people who use mid/high grade won't notice the difference. BTW does anyone know what the price difference is between regular and premium gas is in the states ?? Just wondering if we are getting screwed there too ..