gas prices?

[5000Audi]

So i cheaked out the TSX site posted on another thread and it said the price of oil was 48$ a barrel, So that being said, why when oil was 150$ a barrel we were paying $1.40/L but when it is down at 48$ were still paying $0.68/L

Oil has dropped 2/3 since summer but the price of gas has not
the price of gas Should be around $0.46/L if my calculations are correct..

so why has the price of gas not gone down with the price of oil?


this might be a stupid post to those who know more then i do about the oil/gas industry

[sputnik]

Originally posted by 5000Audi
So i cheaked out the TSX site posted on another thread and it said the price of oil was 48$ a barrel, So that being said, why when oil was 150$ a barrel we were paying $1.40/L but when it is down at 48$ were still paying $0.68/L

Oil has dropped 2/3 since summer but the price of gas has not
the price of gas Should be around $0.46/L if my calculations are correct..

so why has the price of gas not gone down with the price of oil?


this might be a stupid post to those who know more then i do about the oil/gas industry

The actual crude oil is only a fraction of the cost of gas.

Taxes, refining, pipeline, transport and other costs haven't dropped.

[Eleanor]

Steel prices are dropping too, why aren't car prices dropping?

[5000Audi]

Originally posted by Eleanor
Steel prices are dropping too, why aren't car prices dropping?
last time i checked they were ;) :thumbsup:

[Eleanor]

what is cheaked?

[Zero102]

So, people who work at refineries are supposed to check the stock market to find out what they will get paid each day?
When they buy equipment for the refineries does the price change exactly with the current price of crude?

The interest payments they are making on the money they borrowed to buy land, run pipelines, etc., does that change with the price of crude?

There is a certain amount of fixed overhead in the refining process. This is why the price is not directly related. If you look back, you will see these prices are a HAIR inflated for the current price of crude but not really abnormal given it is wintertime. It would be nice to see it about 10c/L lower but really I wouldn't expect much more than that. Also, many stations that are selling fuel right now paid for it some time ago (well not the stations directly but the companies...) so they still have to make their profit on what they paid.

Hopefully we'll see it drop another 10c/L or so, but I really wouldn't expect any more than that.

[semograd]

its because we are used to paying more so they know the majority of the population wont complain when they do get some sort of savings even though we are still getting ripped off.


Then when gas goes back up to 80$-90$ a barrel the price of gas will go up to 1.40$. We wont complain because its we have payed that in the past so meh...


Then it will go to 140$ a barrel and they will charge 2.00$ a liter. Only then we will start complaining and gas will go down to 80$ a barrel but they will only reduce the price of gas at the pump to 1.40 $ a liter. But we wont complain because its a savings. Then the cycle starts over again.

This has been happening for the past few years. Its a great way to maximize profits.

[semograd]

Originally posted by Zero102


Hopefully we'll see it drop another 10c/L or so, but I really wouldn't expect any more than that.

Ya drive 20 minutes out of Calgary and you will see those lower gas prices already.

[corsvette]

Prices can stay where they are right now and i wont complain one bit!

[Eleanor]

Originally posted by semograd
This has been happening for the past few years. Its a great way to maximize profits.
It's also why people in this city drive BMWs instead of Ford Focuses.

[badatusrnames]

Originally posted by sputnik


The actual crude oil is only a fraction of the cost of gas.

Taxes, refining, pipeline, transport and other costs haven't dropped.

Yeah. There are certain fixed costs involved from wellhead to spark plug.

Funny how with gas prices at record highs, people weren't taking more about how government takes from fuel taxes were proportionally as high.

[semograd]

Originally posted by Eleanor

It's also why people in this city drive BMWs instead of Ford Focuses.

http://www.freewebs.com/hc1inc/identifying-wood-stupid-book.jpg

[badatusrnames]

Originally posted by semograd


http://www.freewebs.com/hc1inc/identifying-wood-stupid-book.jpg

This picture works for you.

Examining a topic that is actually quite complicated in overly simplistic terms.

[semograd]

Originally posted by badatusrnames


This picture works for you.

Examining a topic that is actually quite complicated in overly simplistic terms.

I admit that I may have shot myself in the foot. Even though I posted that pic to ridicule Elanor ;) (We don't need a reminder on why everyone drives bimmers in Calgary). I still think that we are being overcharged. Like I said drive to any small towns gas station and prices will be at least 10 cents cheaper then in calgary.

Whats your super complicated explanation for that?

[drewboy]

Funny to read this thread on a Calgary forum... Oil makes this city what it is, most people in this city don't want to see low oil/gas prices...

[sputnik]

http://petro-canada.typepad.com/photos/uncategorized/2008/05/06/taxpiechartengsmaller_2.jpg

[badatusrnames]

Originally posted by semograd


I admit that I may have shot myself in the foot. I still think that we are being overcharged. Like I said drive to any small towns gas station and prices will be at least 10 cents cheaper then in calgary.

Whats your super complicated explanation for that?

For one, it's more expensive to do business in Calgary. Cost of property, basic services, business taxes, property taxes, employee wages are all likely higher. Restaurant meals are also cheaper in small towns for example.

Profit margins are different, Supply/demand is different. It could be any number of reasons.

There's no big gas price fixing conspiracy, sorry. If you want to exert downward pressure on the price of gas in Calgary, go out of town to buy your gas.

[nonlinear]

the canadian dollar was stronger when crude oil was higher.

[HiTempguy1]

There's no big gas price fixing conspiracy, sorry

In Red Deer there is, but lets not go there :(

[Supa Dexta]

I just saw one station across from another and they had a 10c difference...:nut: 65/75

[Godfuader]

Crowfoot today had 77 at Petro and 67 at Macs.

[Gart]

Crowfoot today had 77 at Petro and 67 at Macs.

low of 62.9C reported on http://calgarygasprices.com/ :dunno:

[Spoons]

I had a dream gas prices went back up to a 1.30...

Watch out ;) :rofl:

[sputnik]

Originally posted by Spoons
I had a dream gas prices went back up to a 1.30...

Watch out ;) :rofl:

That is a great dream for me.

[Zero102]

Originally posted by semograd


Ya drive 20 minutes out of Calgary and you will see those lower gas prices already.

Where 20 minutes outside of Calgary is gas $0.55/L? Nowhere that I am aware of.

[HiTempguy1]

Gas prices in Deadmonton went up 5C a litre over night! So it begins again... :eek:

[brownboi]

Originally posted by corsvette
Prices can stay where they are right now and i wont complain one bit!


^^^^^ I agreee :thumbsup:

[Power_Of_Rotary]

gas price went from 150 a barrel to 40...meaning the chance of it goin back up to 150 is slim. people arent goin to fall for the same trick that the americans pulled

but dont forget, canada's economy depends on oil lol, easily emphasized by the canadian dollar goin up as oil does

[grocko]

74 up in Beddington....still not that bad....



Originally posted by Power_Of_Rotary
gas price went from 150 a barrel to 40...meaning the chance of it goin back up to 150 is slim. people arent goin to fall for the same trick that the americans pulled

Slim? last time I checked this UN-renewable resource was being used more and more....and with emerging economies such as China and India becoming more dependant on it, it really has nowhere to go but up again.....

And what exactly was the trick the Americans pulled??

[Supa Dexta]

there used to be about a 15c-20c difference from out here to back in NS, and now NS is actually cheaper, despite what some may say, you're getting raped out here.