Quote: Originally Posted by Albertabound
With oil now being at 2005 prices, why are not paying 2005 gas prices at the pumps? Considering the gas budget for an ordinary family, should this not be a major issue with our government in the next election. If we are compared to having the same oil reserve as Saudi Arabia, why is it that Saudis pay 5 cents a litre for their fuel and we pay 95 cents a litre
- Many countries in the third world subsidize gas to their citizen. Maybe that's the way in Saudi Arabia.
- It takes time for oil prices to come down. Oil realizations are not dependent on the spot price. They are dependent on the futures market, primarily. The futures markets have not come down as much as the spot market. If the spot price continues to fall, so will the price at the pumps.
- If you are environmentalist, you want prices as high as possible.