In my continuing posts (rants) on current gas prices, we are once again looking at an overnight hike of huge proportions, which once again does not match the formula for lowering gas prices.
When the price of oil plunges downwards, there is never any movement on the price of gas. The excuses the oil companies use is that the more expensive gas is still filtering thru the system and they have to wait to lower prices.
Why is it then when during the day the price of oil goes up two dollars a barrel and exactly at midnight we see the price of gas jump several cents a litre? The oil companies offer no explanation other then the rising costs. But isn't the cheap gas still filtering thru the system? Why no mention of that? Profits my friends, huge quick and easy gouging profits.
This past week we saw oil go up two dollars a barrel in a single day and at midnight the price of gas went up 5 cents a litre. They then put it up a couple of cents more each day until it hit a total increase of 9 cents a litre.
Meanwhile oil is holding steady at $51 a barrel and is looking to trend down. Now you see, the price only went up because the OPEC nations announced they had an agreement in principle to reduce the output of oil by a million barrels a day. Not a large drop when you consider how many 100 of millions they produce a day plus factor in Russia and even the Untied States who is now the leader in oil production.
So they actually haven't stopped making more oil yet, but are only saying they will do it. This causes speculators on the market to buy up oil and drive it's price up. Meanwhile back in reality there is still a glut of oil in the world. The U.S, has so much oil that they are asking Congress to let them start exporting oil. Something that was banned way back in the 1970's over fear of no gas, because of the issues of the day back then.
Well as we keep paying more and more for gas and other energy supplies, is it any wonder why people are asking for better public transit. More bike lanes in the city and electric cars sales are booming.
For those Canadians living in the province of Ontario, there will be no relief in sight as the premier of Ontario has introduced a carbon tax which will come January 1, 2017, increase the price of gas by 4.2 cents a litre. And that tax is subject to the HST tax. Tax on your tax!!!!
Time to trade in the SUV and buy a subcompact!
