Are the Canadian consumers being ripped off by the oil companies NOW?

[jedi1648]

The price of a barrel of oil tumbled from a record high of $147.27 US in July 2009 to less than $40 US now in December, 72% drop in price.

Now, the average price of a litre of gas in Canada has fallen to about $0.75 — well off the peak of around $1.50 in some markets in July 2009, only 50% drop.

Based on the perecentage drop, the gas price per litre should only be $0.41, not $0.75.

Are the Canadian consumers being ripped off by the oil companies NOW?

[TenzoR]

if the answer is yes, what are you planning to do about? just moan and b!tch?

[jedi1648]

if the answer is yes, what are you planning to do about? just moan and b!tch?

Better to ***** & moan, than say nothing while being screwed. It is a shame that so many people like you do or say nothing about it.

In fact, I have just asked my MP to do something about it.

[SkylineGTR]

Yeah wow never looked into it but yeah you're right; we are getting screwed. The only bright side to this is at least we are not paying $1.40/L like it was in the summer.

[SkiD]

The price of a barrel of oil tumbled from a record high of $147.27 US in July 2009 to less than $40 US now in December, 72% drop in price.

Now, the average price of a litre of gas in Canada has fallen to about $0.75 — well off the peak of around $1.50 in some markets in July 2009, only 50% drop.

Based on the perecentage drop, the gas price per litre should only be $0.41, not $0.75.

Are the Canadian consumers being ripped off by the oil companies NOW?

I think you forgot that the Canadian dollar has also lost 20% of it's value since then.

[D-3vil]

I think you forgot that the Canadian dollar has also lost 20% of it's value since then.

And that there are fixed costs factored into the price of gasoline that do not fluctuate with the price of oil.

[S14_Raven]

And that there are fixed costs factored into the price of gasoline that do not fluctuate with the price of oil.

Ya except when it goes UP... it's almost immediate.

OP, it's nice that you're JUST realizing we're getting fleeced

[kplange]

Yes, we are getting ripped off badly. I spend my winters in Arizona and check prices and exchange rates once in a while just to see how bad it is. Currently, I can fill my car (let's say 20 U.S. gallons) at todays price of $1.61 for $32.20. At todays Scotia Bank exchange rate of $1.30, that's $41.86 Canadian. Now, if I convert that 20 U.S. gallons to Canadian gallons (16.8) then convert into litres (75.6) and multiply it by what I would be paying in Winnipeg (78.4), my cost would be $59.27. Almost $20 difference per tank. Yes, I'm glad that it's not costing me $100 per fill as it did this summer, but, as usual, we're slower to drop our prices to where they should be

[VivienM]

The price of a barrel of oil tumbled from a record high of $147.27 US in July 2009 to less than $40 US now in December, 72% drop in price.

Now, the average price of a litre of gas in Canada has fallen to about $0.75 — well off the peak of around $1.50 in some markets in July 2009, only 50% drop.

Based on the perecentage drop, the gas price per litre should only be $0.41, not $0.75.

Are the Canadian consumers being ripped off by the oil companies NOW?

No, we're being ripped off by the government. There are PLENTY of taxes that are levied on a per-litre basis.

Back when oil was like $10/barrel over 10 years ago, gas was like... 52-60 cents. Now oil is $40... and gas is 70 cents.

So, I don't see anything wrong with the current price...

[Chr1s]

I think you forgot that the Canadian dollar has also lost 20% of it's value since then.

Oh please. Our dollar was much worse a few years ago; it was almost at twice as low as it is now in relation to the US dollar, and gas prices were in-line with barrel prices. Exchange alone is no excuse for this price gouging.

OP, YES we are getting RIPPED OFF royally!!!

[PsioniC]

Oil if a free market good. It's price is determined by supply and demand.

The parts that make your cellphone probably cost close to 5 dollars but you paid 200+ for it.

I'm tired of hearing this ******** arguement that because one of the input prices for gasoline has come down that the price must fall accordingly.

Gas companies will continue to charge the optimal price for their profits. They can sell 500 liters at 1.50, 1000 liters at 1.00 or 3,000 at .70, the gas companies are going to charge whatever makes them the most money. The cost of crude oil plays only a part in influencing the supply and demand for refined gasoline. Since when are the gas companies obligated to charge you the lowest possible price? They are profit oriented firms, we live in a capitalist society. If you dont like it, try and find a company that still runs on communism and move there.

[hagbard]

:arrowu: What he said. :lol:

Oh, and if the gobbermint dropped the gas tax, it would be even lower. Nine out of ten problems with "the market" are really problems caused by the gov't.

[bionicbadger]

You do know that there is a bunch of tax in that price. In ontario its $0.147 / litre plus 5% GST.

[SkiD]

Oil in July - $US 147/barrel or $CAN 150/barrel
Gas in July - $1.35 (Edmonton)
Dollar in July - .98

Oil in December - $US 40/barrel or $CAN 51/barrel
Gas in December - .68 (Edmonton)
Dollar in December - .78

price per barrel decrease = 51/150= 34%
price per litre gas decrease = .68/1.35 = 50%

the 'real' price of gas should be .46 if only the raw price of oil and the US and CDN markets were the same

No wonder SUV sales are increasing.

[SkeeterJohn]

All i can say is that it would be nice if i could exchange the 50 gallons of $1.30/l gas in my boat before i winterized it for the $0.67/l gas that we have now :lol: :lol: :lol:

Don't worry i'm sure we'll see a sharp increase again when summer rolls around. That's how it works isn't it ? :|

[PsioniC]

All i can say is that it would be nice if i could exchange the 50 gallons of $1.30/l gas in my boat before i winterized it for the $0.67/l gas that we have now :lol: :lol: :lol:

Don't worry i'm sure we'll see a sharp increase again when summer rolls around. That's how it works isn't it ? :|

Yes, because in the summer more gas is demanded! Ugh I can't believe some of the ignorance that surrounds this type of stuff.

[SkeeterJohn]

Wow must have hit a nerve there eh! :lol:

Sorry really ignorant here "apparently" ! :|

[time space]

Oil if a free market good. It's price is determined by supply and demand.

That may have been true at one time, but unregulated speculation (http://www.csmonitor.com/2008/0624/p01s04-usec.html) has disconnected it's price from simple supply and demand.

[VivienM]

Don't worry i'm sure we'll see a sharp increase again when summer rolls around. That's how it works isn't it ? :|

Sharp increase... meaning $0.10/L at most?

As I said in another post (possibly in the personal finance forum though), I think most of what has happened with oil pricing was due to rampant speculation by hedge funds playing with cheap borrowed money. Those guys can't borrow cheap money anymore... and if they're not distorting the market, the price won't fluctuate in the insane way we've seen in the past 2-3 years.

[mr_raider]

Yes, we are getting ripped off badly. I spend my winters in Arizona and check prices and exchange rates once in a while just to see how bad it is. Currently, I can fill my car (let's say 20 U.S. gallons) at todays price of $1.61 for $32.20. At todays Scotia Bank exchange rate of $1.30, that's $41.86 Canadian. Now, if I convert that 20 U.S. gallons to Canadian gallons (16.8) then convert into litres (75.6) and multiply it by what I would be paying in Winnipeg (78.4), my cost would be $59.27. Almost $20 difference per tank. Yes, I'm glad that it's not costing me $100 per fill as it did this summer, but, as usual, we're slower to drop our prices to where they should be

Why the intermediate step converting from US to Imperial gallons?

[potato]

Invest in a refinery.

This way you can cheer for the rip off cause your stock is going up.:rolleyes:

[Whitedart]

No, we're being ripped off by the government. There are PLENTY of taxes that are levied on a per-litre basis.

Yes, the wholesale price of gas on BNN.com today is 97 cents US or 1.22 CDN per US gallon.

Converted to litres (divided by 3.78) that works out to 32.33 cents per litre CDN at wholesale.

Add on federal taxes, plus provincial taxes of 14.7 cents, plus GST, takes it to about 64 cents per litre which is the before profit price in Ottawa according to McTeague's site.

About 50% of the current cost is levied taxes.