Quote: Originally Posted by Albertabound
I'm with you 100% on that one.
Then I believe you have many answers to your questions already, albeit not all of them to your satisfaction.
The price of gasoline in Canada (varies by province) is higher than the US for several reasons. And let me just say that I am no economist and I may have a few things wrong but I'll give it a shot from my business background.
1) You have just under 20 refineries spread out all over Canada. It is cheaper to import crude oil from the U.S. and refine it locally (say Quebec) than to transport oil across Canada. Part of the problem is you do not have a refined energy distribution network.
2) Your taxes at the pump are way high, just under 50% last time I checked, which tells me you are getting a HUGE break at the pump had your taxes been comparable to taxes charged at the pump in the U.S. I would go so far to say as it would be less than the U.S.
3) Your provincial trade barriers need to be overhauled, to the extent it is cheaper for residents of provinces to buy from the U.S. than it is across the next door province or within the province itself.
4) Katrina kocked many refineries offline thereby creating a shortage of refined fuel products.
That's all I got. all this together makes alot more sense in my head why you are paying more at the pump for being a world leader in oil production, rather than an agreement that somehow forces Canadians to pay more at the pump.
Something isn't adding up.