Holy christ it’s almost 1.50 thanks to Hurricane Katrina.
[quote=“Pandemic”]
Holy christ it’s almost 1.50 thanks to Hurricane Katrina.[/quote]
you really believe thats why?
[quote=“jesus”]
Holy christ it’s almost 1.50 thanks to Hurricane Katrina.
you really believe thats why?[/quote]
Please, tell me why gas prices are rising if you know the truth.
Ivan, the gas you’re buying now is from oil that was “bought” 6 months ago.
If, as the oil companies claim, that “crude costs” are approximately 42% of gas prices:
then look at it this way: crude oil has increased about 50% in the last year or so. Gas at the pump prices have increased nearly 65%.
If the rise in crude prices were the only factor in the rising gas prices, you’d see at most, a 21% or so rise in gas prices.
Why the difference? Why is gas so much more expensive than it should be? Especially when the oil they’re using now was bought a long time ago (and much cheaper than today’s prices?). You’ll find that profits are way up!
Ah capitalism – the price will go up as long as there is no competition and you keep buying.
[quote=“MiG”]
Ivan, the gas you’re buying now is from oil that was “bought” 6 months ago.[/quote]
Are you trying to say that the effect of supply and demand shouldn’t take place until the oil after katrina is refined and sent to the pump?
The point is that Katrina has nothing to do with either supply or demand of today’s gas. Oil is actually dropping in price, you know that, right?
The supply is already here, Katrina won’t make that supply smaller.
The demand is the same as it’s always been, Katrina won’t make that demand greater (first indications say that it’s actually made the demand smaller).
Katrina may have an influence on oil prices (so far it hasn’t), but even if it has, then that effect won’t hit the pumps for 6 months.
No, today’s gas prices are profiteering. I’m willing to bet that the oil companies know that people would buy gas at even $2.00/litre or more. Profits all around!
[quote=“MiG”]The point is that Katrina has nothing to do with either supply or demand of today’s gas. Oil is actually dropping in price, you know that, right?
The supply is already here, Katrina won’t make that supply smaller.
The demand is the same as it’s always been, Katrina won’t make that demand greater (first indications say that it’s actually made the demand smaller).
Katrina may have an influence on oil prices (so far it hasn’t), but even if it has, then that effect won’t hit the pumps for 6 months.
No, today’s gas prices are profiteering. I’m willing to bet that the oil companies know that people would buy gas at even $2.00/litre or more. Profits all around![/quote]
Haven’t numerous countries, including Canada, offered to increase the supply to precipitate the drop in oil price? If the supply of oil has nothing to do with prices, why are they dipping into reserves to increase it? Is it a move intended to keep the prices stabilized six months from now?
Remember, according to the oil companies, crude oil cost is only “42%” of the cost of gas. So when oil goes up, it should only influence 42% of the cost of gas, right?
Here’s a very graphic example of the difference in rise of oil vs the rise of gas:
(these are US graphs, gas prices have increased at a greater rate in Canada, but the comparison is still worthy)
Oil prices:
Since March, from $55 to $68 or so – increase of about 24 % or so.
Gas prices (US prices, Canadian prices actually increased more)
Since March, from $1.40 to $2.60, increase of about 85 % increase or so. These are wholesale prices.
So, if the oil companies are right, and crude costs are responsible for 42 % of the price of gas, then why does an increase of 24 % in that crude cost in three months mean an increase of 85 % of the gas price? Why not 10% in three months? Their costs have basically increased 10%, so why an 85 % in increase?
Not because of Katrina. (you’ll find gas prices went down after Katrina).
Gotta go to brunch. Your graphs look pretty cool. I’ll continue this discussion after I get back.
Exactly. Considering most Alberta producers can’t even begin to increase production for a few months (thanks to the age-old government cap on production), that’s exactly what they want to do.
It’s a futures market, but don’t kid yourself that supply or demand has anything to do with the retail price of gasoline. If it did, then shouldn’t Petro-Canada’s prices be cheaper (they produce most of Canada’s oil, and cheaper!).
Why is oil that costs Petro-Canada $11/barrell, refined at a Petro-Canada refinery, sold as gas for $1.50/litre?
Esso Canada has to buy oil at $65/barrell, refine it outside Canada, ship it here, and still it manages to sell it for $1.50/litre?
Market forces don’t operate in the retail gas market – if they did, all the gas stations wouldn’t have the exact gas price. So no supply and demand at the local pump.
Supply and demand has a lot to do with the price of crude, but that’s about it.
Follow the trend lines, they seem to tell the story that I’m trying to tell 
If oil goes up 100%, gas should only go up 30-40% And historically and looking long-term, that’s been true.
But it isn’t true in the last couple of months, and it has zero to do with Katrina.
[quote=“MiG”]
Follow the trend lines, they seem to tell the story that I’m trying to tell
If oil goes up 100%, gas should only go up 30-40% And historically and looking long-term, that’s been true.
But it isn’t true in the last couple of months, and it has zero to do with Katrina.[/quote]
Bottled water goes for $1.89 a litre. Gas is cheap.
So wow… 35+ hours of driving for the last weekend. I brought two jerry cans and filled up with whatever was cheapest both way. Fraser lake is still 108.9, and everywhere else is pretty much 118.X - 119.X. Even marine gas is 115.X or so… About 500Km a tank at ~$50, so $300 to Kelowna and back in the Firechicken. It could be worse considering the Greyhound is also $150 each way, and with your own car you can pack more shit, listen to your music, stop when and where you want and to top it off, save about 8-10 hours. Someone needs to thin out the Porcupine population around these parts though. I saw no animals between Kelowna and PG, 3 coyotes and a rabbit between PG and Terrace and about 18 porcupines between Terrace and here, on the western half. Gibs everywhere! They’re so low to the ground and hard to see at night on wet concrete. Dry spots are fine, and the silverstars are premo for anything with glowing eyes from about 1Km away, but those prickly little bastards are so stupid and helpless… Release the wolves!
$200 in gas to Telkwa and back.
That’s so brutal… Led foot, Eso?
Led like a Zeppelin?
Before anyone gets confused, this wasn’t in the Zedder, this was in my old man’s camperized 3/4 ton van with a 318 V8.
[size=18] 10 car-care tips that save gas
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Fill up with a lower-octane gasoline. Buy the lowest grade or octane of gasoline that is appropriate for your car. Unless your car requires premium gasoline, filling up your car with high-octane fuel is a waste of money. That pricey premium fuel won’t boost your car’s fuel economy or performance in the least, so skip it.
If you’re not sure what grade of fuel works best for your car, open up your owner’s manual and take a look. As long as your engine doesn’t knock or ping when you fuel up with regular unleaded, you’re good to drive on this much cheaper gas. Passing on pricey premium gasoline could save you hundreds of dollars a year.
Don’t top off. Don’t bother topping off when filling your car’s gas tank. Any additional gas is just going to slop around or seep out. Why waste your money paying for gas your car won’t use? Stop pumping at the first indication that your tank is full when the automatic nozzle clicks off.
Tighten up that gas cap. Gas will evaporate from your car’s gas tank if it has an escape. Loose, missing or damaged gas caps cause 147 million gallons of gas to evaporate each year, according to the Car Care Council. So be sure to tighten up that gas cap each time you fuel up your car.
Go for the shade. The hot summer sun that makes the inside of your car feel like a sauna also zaps fuel from your gas tank.
“If you let your car bake in the sun there’s going to be a greater amount of evaporative emissions that take place than if you park in the shade,” says Jim Kliesch, research associate at the American Council for an Energy-Efficient Economy and vehicle analyst for GreenerCars.com.
So park your car in the shade of a building or tree whenever possible. And buy a good windshield shade. A windshield shade blocks sunlight and helps to keep heat out of the inside of your car.
Use your garage for your car. Got a garage? Clear it out and make room for your car. Parking in your garage will help your car stay warm in winter and cool in summer, and you won’t have to depend as much on your gas-guzzling air-conditioning or defroster when you drive.
Pump up your tires. Don’t get caught driving on underinflated tires. Underinflated tires wear down more quickly and they also lower your car’s gas mileage.
“Tires that have low pressure offer more resistance so the engine is going to work harder to keep the car at 60,” says Brian Moody, road test editor at Edmunds.com.
Your car’s gas mileage may plummet by as much as 15 percent. Driving on underinflated tires may also reduce the life of your tires by 15 percent or more.
Check your tire pressure once a month. Buy a digital gauge and keep it in your glove box. Compare the pressure in your tires with the recommended pressure listed in your owner’s manual and on the placard in your car door. Then inflate your tires as needed. Be sure to check tire pressure when your tires are cold. A good time is early in the morning after your car’s been idle overnight.
Keep your engine in tune. Fixing a car that is out of tune or has failed an emissions test can boost gas mileage by about 4 percent. So be sure to give your car regular tune-ups. You’ll also want to watch out for worn spark plugs. A misfiring spark plug can reduce a car’s fuel efficiency by as much as 30 percent.
Replace air filters. Keep a close eye on your engine’s air filter. When the engine air filter clogs with dirt, dust and bugs, it causes your engine to work harder and your car becomes less fuel-efficient. Replacing a clogged air filter could improve your gas mileage by as much as 10 percent and save you 15 cents a gallon. It’s a good idea to have your engine air filter checked at each oil change. The Car Care Council recommends changing your car’s air and oil filters every three months or 3,000 miles or as specified in your owner’s manual.
Use the right oil. You can improve your car’s gas mileage by 1 percent to 2 percent by using the manufacturer’s recommended grade of motor oil. Opt for motor oil with the words “energy conserving” on the API performance label. This oil contains friction-reducing additives.
Don’t skimp on maintenance. Be serious about auto care. Your car’s performance depends on it.
Oh yeah, and…
Avoid topping off
Try to avoid topping off at the gas pumps. When you purchase just a bit of gas at the gas station the pump doesn’t have enough time to really activate, resulting in short bursts of fuel that may short change you from the amount of gas that you are purchasing.
The best time to replenish your gas tank is when you have half a tank or less left in your vehicle, or when you find a gas price that you just can’t afford to miss.
Do you believe that gas prices should be regulated by the government?
Well, it’s not like it’s a free market now.
You’re kidding yourself if you think that supply and demand are acting on the retail gas market.
Either let there be competition, or let the government run it.
“the price will go up as long as there is no competition and you keep buying.”
Isn’t that statement indicative of the forces of supply and demand acting on the market? Isn’t it indicative of high demand? Are you claiming that gas companies are breaking the law with illegal pricing agreements?