Gas Prices Slip... Yeah Whatever

Stardate 3917.8

Gasoline prices slip to $2.21 a gallon - survey

NEW YORK (Reuters) - U.S. average retail gasoline prices fell during the past two weeks and could slip further as U.S. crude oil and gasoline supplies swell, according to an industry analyst.

The national average for self-serve regular unleaded gas was $2.2129 a gallon on May 6, down 3.08 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations released on Sunday.

In the past month, gasoline prices have fallen about 7.5 cents per gallon, after surging about 49 cents per gallon at retail from the start of 2005 through April 8.

Even now, with 1 US gallon being equal to 3.79 litres... they are looking at a National average of 58.4 cents a litre. Now I have ranted about this before, and sadly, most people totally missed the point of my rant. I don't care about how much gas costs in Newfoundland, Vancouver or England.

In Alberta, our prime industry is, well, you guessed it, OIL. We produce TONS of oil. There are wells everywhere, dotting the countryside more abundantly than farmhouses. Currently, we are paying between 84.9 cents a litre and 89.9 cents a litre. May long weekend, the prices are expected to jump over $1 a litre. WHY???? Do we export too much? Are taxes too high? Maybe the companies are just too greedy (what else is new)... They all seem to have very nice vehicles and houses those execs from the industry...

A breakdown of gasoline pump prices shows that about 60% of the pump price is the Base cost for the fuel. At this rate, it is almost on par with US prices already.... Federal tax is 15%, Provincial tax is 14% and GST is another 7% on top of all that (ie tax on tax). Now I understand the need for the taxation on both fronts, but is that the entire problem? If the raw gasoline costs 60% of the pump price (ie 54 cents a litre), then it is nearly the same as what your average US citizen is paying. I am sure the US taxes their gasoline production as well, but then they have a lot of, well, questionable sources of fuel as well. Why does our gas cost more? Processing and transport should realistically cost the same.

I think the gas and oil industry is one of the most inefficient industries on the planet. Many of these companies are willing to pay more for simple supplies for example, than if they actually bought bulk supplies from a wholesales place. May sounds silly, but it runs all the way down the line. One company buys a roll of tape worth $2 for $5. They get it hotshotted out to a location costing maybe $100 or more, then they charge their clients even more. Remember, everyone needs to make money in our glorious economic machine. Suddenly, we are paying 90 cents a litre at the pump. Maybe it's time Canada invaded Kuwait :P

Next time the mighty US wants to complain about gasoline prices, try living in other parts of the world. Or maybe try taking the bus.