Continuing story on Gas Prices

On July 10, 2008 the price of oil peaked at $146/barrel. On that date the average price of gasoline in Ontario was $1.36/litre.

According to gasbuddy.com on October 16, the oil price was $75/bbl, a drop of 49%. On this same date, the average Ontario gas price was $1.04/litre, a drop of only 24%.

Where's the rest of the money going?

And they can find no evidence of price gouging? It is right in front of your face! In case you think I am making these number up, check out the chart from www.ontariogasprices.com.

Time to learn a lesson?

The oil industry mouthpieces are telling us that there are two prices that can fluctuate when hurricanes hit.  The tell us that there is a price for oil, based on supply and demand of oil.  They also tell us that gasoline has a separate demand and supply.  This, somehow, explains why why oil prices go up, gasoline rises with it but somehow the reverse is not the case.

So as of September 15, today, oil prices are below $95/bll gas prices while the average gas price in Ontario is $1.36 (gasbuddy.com).  In mid July the oil prices were $146 and gas was $1.36.  What???

Those industry guys tell us that gas prices rise when demand exceed supply and as demand falls with price rises, the supply drops because the refineries for gas are in Texas and Louisiana.   For God's sake, why not build the refineries in area not affected by daily hurricanes.  You can stockpile oil at the refineries away from Texas and when hurricanes strike, the refineries are not shut down and the gas prices won't skyrocket.

But, hey, let's talk Canadian gas prices.  How much gasoline do we get from the US?  NONE.  So why when US gasoline supplies are reduced, Canadian prices rise.

Can you say gouging.  I know that the government can't.