Oil vs Gas Prices

[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

 

[I think not]

High taxes? Still nothing compared to Europe.

 

[I think not]

Here's a better link for you;

http://www.caa.ca/mini sites/gasprice/pricing.html

 

[Toro]

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.

 

[I think not]

What Toro said. :laughing7:

 

[jjaycee98]

Then there is the greed factor also

We live in Grande Prairie, AB and the past 3 years the winter price for Deisel skyrockets higher than the local price for Premium Gas. There is no other possible explanation for this other than from the producers on down to the dispensers; all know that the Oil & Gas patch are busy here in winter and they have a chance to make a cash grab. Come April the price dropped down below Regular the last 2 years.

Yesterdays price for regular here was 93.9, premium 101.9 and deisel-104.9! In 2004 we bought a 2003 extented cab deisel and were paying 69.9 rather than 89.9, and do still get great mileage but the price is killing.

 

[BitWhys]

...you want prices as high as possible.

The public good would be better served if some way were found to convert the money being absorbed by the refineries, in no small part due to lack of any real competition at the pumps in a vertically controlled market, to be costed out to the consumer in the form of environmental taxes, not profits.