What is the price of gas, anyway?

[Osiris]

Exchange rate 2 years ago: $.65 CAD / $ US
Present: $.81 CAD / $ US

Crude Oil per Barrel 2 years ago: $35 US / barrel
Present: $55 US / barrel

Gas Cost at the Pumps 2 years ago: $.65 CAD / liter
Present: $1.00 / liter

Crude Oil per Barrel 2 years ago ($CAD): $35 US / .65 = $54 CAD
Present: $55 US / .81 = $68 CAD

While the cost of crude oil measured in Canadian dollars has increased from $54 CAD to $68 CAD (about 25%), our cost of gas at the pumps has increased from about $.65 CAD to $1 CAD (about 55%).

If you're not an SP, but you feel like you're being screwed, maybe that's why.

Who's profiting from this? Why, oil companies are - American oil companies.

It's also been noted that the actual increase in the cost of oil is slowing down economies world wide. Gee, that would make the mess the American economy is in look better.

Draw your own conclusions...

 

[Herb_The_Perb]

Is Petro Canada an American company?

 

[wilde]

In Vancouver, for every $.50 at the pump add on $.10 Federal Excise Tax, $0.145 Provincial Tax, $0.06 Transit Tax, and 7% GST on the gas and the taxes (ie/ tax on tax). Who is profiting from this? The oil companies and all three levels of government.

 

[Osiris]

Check out the major shareholders of blocks of Petro Canada stock. It ain't Canadians. In any event, the inhabitants of Red Square in Calgary are small potatas compared to the US oil companies.

 

[Osiris]

Taxes, taxes...

The math doesn't lie. The taxes are proportional and haven't changed during the same time period as a % of sales. Including taxes, the % increase in the price at the pump should be in line with the increase in the price of crude.

Taxes are one reason why we pay more per unit than our US friends, but that doesn't affect the % change we should be seeing if all other things were held equal.

 

[Osiris]

Inflation

According to the calculator on the Bank of Canada website at:

http://www.bankofcanada.ca/en/inflation_calc.htm

$100 worth of goods 2 years ago would cost you $102.86 today - not that much different, in other words. And, part of that increase is due to fuel & transportation costs of all kinds.

Inflation isn't very significant right now, unless you're heavily affected by particular items and commodities, like say, owner operator truckers. The low interest rates we've been seeing for the past several years tend to reinforce that opinion, since inflation is a component of the central bank rates.

 

[James]

For what it's worth, gas is about $.20/ltr cheaper once you get east of Aldergrove. Worth it if you're out that way a lot. It used to be just the tax difference, but lately i seems to be about tax plus $.10.

 

[kafka555]

Taxes on Gas in BC


Federal Excise Tax: 10 cents per litre (this has not changed since 1987), not per 50 cents.

Provincial Motor Fuel Tax: 14.5 cents per litre in the Greater Vancouver Regional District, 10.5 cents per litre outside the GVRD (I think the Capital Regional District is 12.5 cents per litre, but I'm not sure), not per 50 cents. The extra 4 cents is the transit tax.

GST: 7/107ths of the total price per litre.

At $1.00 per litre the taxes are $(.10 + .145 + .06 GST)= 30.5 cents per litre. The other 69.5 cents goes to the oil companies. I've notice the gas stations have taken down their signs explaining the taxes.

Abbotsford and Mission are outside the GVRD, so prices should be at least 4 cents cheaper there.