Crude Oil Prices are down 16% this week and I'm still seeing 89.9 cents per liter at the pumps I wonder how long it will take to see this change because they general rule is that for every doller per barrel decrease, is a 1 cent per liter decrease at the pumps. (what I read in the Sun)

Andy

 

that actual price of crude oil has no effect what-so-ever over the price being charged, the governments now have the chance to capitalize and collect large margins on oil & gas sales by making the consumer believe the war has a direct impact on prices.. it is all politics

 

Sorry bud...you're incorrect. The government can't just adjust their margins. % Margin is Mark up divided by selling price and the government has no control over that. The more the stations sell...the more taxes they get.

Andy

 

Dude I keep on saying it over & over but noone listens, when something goes bad, prices go up, when something goes to good again prices still high, sometimes they'll change a little after like 2 weeks, but by than 3 days later prices go back up.

 

Say wha????? Didn't our dear liberal government recently just add extra 3-5 cents per liter to 'raise' rates to repair the roads?

I think that is an example of the government controlling the profit margin..

 

The government will never be able to adjust margin unless they regulate the prices themselves...which they aren't. BC hydro is an example of when they do regulate. Profit is something the gas company recieves...not the government. The phrase I would use to describe gas prices is PRICE GOUGE.

Andy

 

No but both of you are wrong, the reason prices per barrel went down is because there is a higher demand for fuel now, so the cost per barrel is cheaper, it doesn't really change gas pump prices because that extra demad was because of the war.

 

well after what happened tonight they will be going higher

 

It takes a month or two for the savings to be passed down to the pumps.

If the price keeps going up, I'm gonna have to start buying vegetable oil from Costco to run my Diesel on. Actually, I might just start filtering used cooking oil to run on instead....

 

Some of you guys have some interesting perspectives on economic theory as well as fiscal policy and the free market system

I have seen so many economic travesties in these replies....

The government does NOT set gasoline prices. The govt DOES levy taxes and of course that is reflected in the price at the pump. Also, the price of oil per barrel does not directly reflect in the pump price. One of the influeances of pump prices is refinery capacity and storage capacity.

I could go on forever on this topic but too tired..

 

umm... sorry bunker, a basic lesson in economics. As demand rises so does price. Whyu may ask? because the overall supply is too low to meet demand. As demand goes up the supply becomes rare. therefore people will pay more to get what is available.
However, the reason that the price of crude oil fell was because analysts predict a short war. That means that the chance of stability goes up and the supply of oil will not be in danger. However, it does take awhile for the prices to drop.
One reason why they wont is because the gas companies know that we are getting accustomed to these prices. Therefore they milk it for all it's worth and keep them as high as possible for aas long as possible.
The government has a set tax rate. and yes even though Campbell raised the prices, it will not fluctuate the price of gas. What makes the price of gas go up and down, is how much the gas companies can buy the crude for so that they can refine it and sell it. No matter what, the amount of tax per litre does not change. ie. It will always be 3.5 cents per litre for the tax that Campbell added. Whether it is 80 cents or 35cents. The only time it changes is when you put a PERCENT of tax on the litre. ie. 7% GST means that if Gas costs $1.00 per litre, it will actually be $1.07 at the pump. ($1.00 + 7%)

 

right.. we're just running on old gas, once we buy the new gas it'll become cheap. for a bit that is.

 

if those bastards out there set fire to the oil fields...

ill go out there and kick someones a$$.... BLAMO

 

Thank you Shawn and Sandeep....thats what I was trying to explain=> too lazy to type it though