Granted I have not done a full analysis of this and don't have some fancy numbers to throw out there but to quote the energy website you mentioned:
"Gasoline prices can be difficult to understand because they do not behave like the prices of many of the other goods that consumers buy every week. Gasoline is a commodity, like gold or pork bellies, and its wholesale price reacts to a number of factors. The most obvious ones are supply and demand. When there is more demand (in summer when everyone drives more), there is more pressure to ensure that there is sufficient supply to meet demand, so the price goes up. When there is less demand, such as during the winter months, supply and demand are better balanced and prices are generally lower.
Over the longer term, demand has been growing each year as drivers choose bigger and bigger vehicles and drive greater distances. This puts pressure on the supply and can also lead to higher prices."
and if we look at the prices of diesel in comparison to gas GAS, DIESEL, one would assume that the demand for diesel has been far greater in 2008 then any year prior. Strangely I have not seen an increase in consumption of diesel, we have the similar amount of diesel burning vehicles in 07, as in 08 and the beginning of 09, yet we have a drastic increase in the cost of diesel at the pumps in 08 in comparison to 07. What's even stranger is how we are looking at 09 and the prices are lower then they were in 08, which has nothing to do with supply and demand, nor as much with the economy, since everything else seems to be going up in price (with the exception of real estate). It's political, and it's corporate greed that affects it. The price was what it was in the past couple of years due to corporations (with government backing) driving it up because they thought the market could bare it, it wasn't about the cost of production going up or the supplies running low. Now people are having more financial troubles and the corporations knew they had to lower the price to reflect what their markets could afford. The cost of production is still the same and as for the supply it hasn't magically increased. The more the corporations make, the more does the government. I love those stickers at the pumps that show the pie chart of the cost of fuel, in the past 4 years the profit and taxes percent of that chart have gone up,
interesting. As for our taxes, on average we seem to have between 34%-38% of tax on fuel (less on the higher grades) which is still the highest in BC (maybe due to the amount of the population), but strangely, with the exception of Newfoundland and Labrador, The Northwest Territories, and Yukon we have the highest cost in fuels. I find it hard to believe that BC is as remote as those other areas and the cost of delivery is as high, or maybe it's the excellent level of service we receive that the others don't get that makes the fuel more expensive here.
"Gasoline prices can be difficult to understand because they do not behave like the prices of many of the other goods that consumers buy every week. Gasoline is a commodity, like gold or pork bellies, and its wholesale price reacts to a number of factors. The most obvious ones are supply and demand. When there is more demand (in summer when everyone drives more), there is more pressure to ensure that there is sufficient supply to meet demand, so the price goes up. When there is less demand, such as during the winter months, supply and demand are better balanced and prices are generally lower.
Over the longer term, demand has been growing each year as drivers choose bigger and bigger vehicles and drive greater distances. This puts pressure on the supply and can also lead to higher prices."
and if we look at the prices of diesel in comparison to gas GAS, DIESEL, one would assume that the demand for diesel has been far greater in 2008 then any year prior. Strangely I have not seen an increase in consumption of diesel, we have the similar amount of diesel burning vehicles in 07, as in 08 and the beginning of 09, yet we have a drastic increase in the cost of diesel at the pumps in 08 in comparison to 07. What's even stranger is how we are looking at 09 and the prices are lower then they were in 08, which has nothing to do with supply and demand, nor as much with the economy, since everything else seems to be going up in price (with the exception of real estate). It's political, and it's corporate greed that affects it. The price was what it was in the past couple of years due to corporations (with government backing) driving it up because they thought the market could bare it, it wasn't about the cost of production going up or the supplies running low. Now people are having more financial troubles and the corporations knew they had to lower the price to reflect what their markets could afford. The cost of production is still the same and as for the supply it hasn't magically increased. The more the corporations make, the more does the government. I love those stickers at the pumps that show the pie chart of the cost of fuel, in the past 4 years the profit and taxes percent of that chart have gone up,
interesting. As for our taxes, on average we seem to have between 34%-38% of tax on fuel (less on the higher grades) which is still the highest in BC (maybe due to the amount of the population), but strangely, with the exception of Newfoundland and Labrador, The Northwest Territories, and Yukon we have the highest cost in fuels. I find it hard to believe that BC is as remote as those other areas and the cost of delivery is as high, or maybe it's the excellent level of service we receive that the others don't get that makes the fuel more expensive here.
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