The Rants of Issachar
Wednesday, August 31, 2005
Gasoline Prices...
Last week I finally had to buy gas at more than $1 per liter. $1.089 to be precise. I was lucky for a while I guess. Now with the damage to US oil refining in New Orleans, the price at the pump is expected to rise again.
So will this make any difference at all? I don't think so... Don't get me wrong, I like cheap gas, (I remember filling up a few years ago for 29.5cents per liter), but I'm still going to keep driving. Driving is still superior to the other ways of getting around. I've got no objections to a more fuel efficient car, but it'll be a while before I can justify the cost.
So a couple of side issues have come up. I heard on the news that the NDP wants government regulated gas prices... Say what?!? I thought this was the party of reduced oil consumption and the environmental movement. Keeping the price of gas low fits in with this how exactly? I may not be driving less, but I'm probably less likely to buy a big SUV with the price of gas going nowhere but up...
And apparently some people in Ontario want Albertans to share their oil wealth with the rest of Canada. (Meaning with them). What's the justification for this exactly? Hint: I want more money is not a good justification. Hey, I'd like it if BC was heading for a big surplus as well, but making a grab for Alberta's is just stealing.
So will this make any difference at all? I don't think so... Don't get me wrong, I like cheap gas, (I remember filling up a few years ago for 29.5cents per liter), but I'm still going to keep driving. Driving is still superior to the other ways of getting around. I've got no objections to a more fuel efficient car, but it'll be a while before I can justify the cost.
So a couple of side issues have come up. I heard on the news that the NDP wants government regulated gas prices... Say what?!? I thought this was the party of reduced oil consumption and the environmental movement. Keeping the price of gas low fits in with this how exactly? I may not be driving less, but I'm probably less likely to buy a big SUV with the price of gas going nowhere but up...
And apparently some people in Ontario want Albertans to share their oil wealth with the rest of Canada. (Meaning with them). What's the justification for this exactly? Hint: I want more money is not a good justification. Hey, I'd like it if BC was heading for a big surplus as well, but making a grab for Alberta's is just stealing.
13 Comments:
Posted by: 
SarahDidn't Alberta do a bit of whinging recently about the damage being done to their economy by that pesky Mad Cow Disease? Didn't they want some help from the rest of Canada at that time?
SarahDidn't Alberta do a bit of whinging recently about the damage being done to their economy by that pesky Mad Cow Disease? Didn't they want some help from the rest of Canada at that time?
Posted by: issacharyeah, there was some comparison made between SARS in Toronto and Mad Cow in Alberta's beef industry.
I suspect that federal government assistance over Mad Cow and SARS were both much smaller than the level of money being generated by higher oil prices.
There's also that pesky little thing called our constitution that gives the provincial government control over the oil & gas industries...
issacharyeah, there was some comparison made between SARS in Toronto and Mad Cow in Alberta's beef industry.I suspect that federal government assistance over Mad Cow and SARS were both much smaller than the level of money being generated by higher oil prices.
There's also that pesky little thing called our constitution that gives the provincial government control over the oil & gas industries...
Posted by: zannebeeGas prices here in Arizona just jumped to $2.99 a gallon - they were $2.67 yesterday.
zannebeeGas prices here in Arizona just jumped to $2.99 a gallon - they were $2.67 yesterday.
Posted by: KatinkaI understand some of the reasons given for the jump in oil prices, but am perplexed as to why consumers aren't being offered options to help ease the burden? As a long-distance commuter, I am seriously beginning to wonder if I will be able to afford to drive to work should prices continue to skyrocket as the current trend seems to indicate.
On the positive side, perhaps this crisis may serve to hasten the development and availability of alternative energy sources such as biodiesel and LPG (the latter being commonly used in Australia)
My question is this: When will the powers-that-be give more of a concerted effort to making biodiesel fuel less expensive so that it is a viable option for the average consumer?
http://www.greenfuels.org/biodiesel/pandf.htm
KatinkaI understand some of the reasons given for the jump in oil prices, but am perplexed as to why consumers aren't being offered options to help ease the burden? As a long-distance commuter, I am seriously beginning to wonder if I will be able to afford to drive to work should prices continue to skyrocket as the current trend seems to indicate.On the positive side, perhaps this crisis may serve to hasten the development and availability of alternative energy sources such as biodiesel and LPG (the latter being commonly used in Australia)
My question is this: When will the powers-that-be give more of a concerted effort to making biodiesel fuel less expensive so that it is a viable option for the average consumer?
http://www.greenfuels.org/biodiesel/pandf.htm
Posted by: SarahKat, I totally agree with you. As a bike rider I have no problems at all with the hike in petrol prices right now - although I understand that not everyone can commute by bike. But I am very much hoping that the increased prices will reduce the number of Hummers on the road (especially the ones driven by Kitsilano soccer Moms, who can't put their cell phone down while driving). I can't see any way around the fact that the number of vehicles on the road is becoming unsupportable with our resources.
SarahKat, I totally agree with you. As a bike rider I have no problems at all with the hike in petrol prices right now - although I understand that not everyone can commute by bike. But I am very much hoping that the increased prices will reduce the number of Hummers on the road (especially the ones driven by Kitsilano soccer Moms, who can't put their cell phone down while driving). I can't see any way around the fact that the number of vehicles on the road is becoming unsupportable with our resources.
Posted by: Carlablah blah blah... just got back from Newfoundland, where it was 1.55 per litre... rumours heading up to 1.80 the day I left.
Carlablah blah blah... just got back from Newfoundland, where it was 1.55 per litre... rumours heading up to 1.80 the day I left.
Posted by: ValeriusIf past price rises have shown anything, it is that people complain a lot and then do very little to change. I'm just glad I can walk to work now. I've met my one tonne challenge for the year :)
I don't know why some people insist there is any advantage to regulating gas prices - there isn't any. PEI regulates prices, and I don't think they save anything in the long run.
Ontario has a valid concern - up to a point. The cynics will suggest that Ontario should have kept it's own fiscal house in order, and that it shouldn't look to other provinces (or the feds) to bail it out. But wealth sharing through equalization is based indirectly on population (income taxes, GST etc.) and Alberta has a much smaller population, so we contribute less than Ontario. I think if Alberta keeps running large surpluses (I've seen numbers for this year from $2.8 billion all the way to $7 billion), it would definitely be justifiable to look at some kind of new arrangement.
I don't think we should cut taxes on gas - we need to discourage consumption, not encourage it. And besides, gas prices fluctuate by ten cents or more overnight, I don't think people will notice a one to three cent cut. Personally, I think the feds should be paying down the debt faster anyway.
Alternative fuels like biodesiel work great with a couple hundred cars/trucks on the road. But I have my doubts it would be economical or even feasable if you would try to fuel say a million cars or more.
ValeriusIf past price rises have shown anything, it is that people complain a lot and then do very little to change. I'm just glad I can walk to work now. I've met my one tonne challenge for the year :)I don't know why some people insist there is any advantage to regulating gas prices - there isn't any. PEI regulates prices, and I don't think they save anything in the long run.
Ontario has a valid concern - up to a point. The cynics will suggest that Ontario should have kept it's own fiscal house in order, and that it shouldn't look to other provinces (or the feds) to bail it out. But wealth sharing through equalization is based indirectly on population (income taxes, GST etc.) and Alberta has a much smaller population, so we contribute less than Ontario. I think if Alberta keeps running large surpluses (I've seen numbers for this year from $2.8 billion all the way to $7 billion), it would definitely be justifiable to look at some kind of new arrangement.
I don't think we should cut taxes on gas - we need to discourage consumption, not encourage it. And besides, gas prices fluctuate by ten cents or more overnight, I don't think people will notice a one to three cent cut. Personally, I think the feds should be paying down the debt faster anyway.
Alternative fuels like biodesiel work great with a couple hundred cars/trucks on the road. But I have my doubts it would be economical or even feasable if you would try to fuel say a million cars or more.
Posted by: ValeriusIf they can breed a horse that can run 110 km/hr, then why not? :)
We'll probably end up with a mix of fuels, some biodiesel, some hybrid cars, some hydrogen, even some electric cars. But we're not running out of gasoline any time soon, so most people probably won't be forced to switch for quite a while. In the meantime, like you said Coul, more people will probably downsize and switch to a car like the Jetta. Or maybe we'll come to our senses about all this suburban sprawl.
ValeriusIf they can breed a horse that can run 110 km/hr, then why not? :)We'll probably end up with a mix of fuels, some biodiesel, some hybrid cars, some hydrogen, even some electric cars. But we're not running out of gasoline any time soon, so most people probably won't be forced to switch for quite a while. In the meantime, like you said Coul, more people will probably downsize and switch to a car like the Jetta. Or maybe we'll come to our senses about all this suburban sprawl.
Posted by: KatinkaValerius, in Australia there is a requirement that all newer model cars must be built to run on environmentally friendly fuels. It is feasible on a larger scale...
KatinkaValerius, in Australia there is a requirement that all newer model cars must be built to run on environmentally friendly fuels. It is feasible on a larger scale...
Posted by: issacharCome to our senses about urban sprawl? Unlikely. It's not just that people don't want to live in the city centres, it's that they can't afford to. Have you seen the price of a house in Vancouver vs. Pitt Meadows?
Incidentally, I'd love to read some hard numbers on this, but I heard once on the radio that if you looked at fuel costs as a percentage of income, gas prices are much lower than they were in the 30's or something. That may be total hogwash, but it does have a degree of plausibility. We do spend a lot of money on gas, but we spend a lot more on other things that we didn't use to. How much does the average person spend on eating out, or on pre-packaged foods compared to their grandparents.
So what is the environmentalist stance on gas prices? Shouldn't they want them higher? $1.15 per liter isn't stopping me from driving, but obviously at some point driving will diminish. So what does this say about all the groups that are calling for price regulation and/or reduced prices through tax reduction?
issacharCome to our senses about urban sprawl? Unlikely. It's not just that people don't want to live in the city centres, it's that they can't afford to. Have you seen the price of a house in Vancouver vs. Pitt Meadows?Incidentally, I'd love to read some hard numbers on this, but I heard once on the radio that if you looked at fuel costs as a percentage of income, gas prices are much lower than they were in the 30's or something. That may be total hogwash, but it does have a degree of plausibility. We do spend a lot of money on gas, but we spend a lot more on other things that we didn't use to. How much does the average person spend on eating out, or on pre-packaged foods compared to their grandparents.
So what is the environmentalist stance on gas prices? Shouldn't they want them higher? $1.15 per liter isn't stopping me from driving, but obviously at some point driving will diminish. So what does this say about all the groups that are calling for price regulation and/or reduced prices through tax reduction?
Posted by: KatinkaIssachar, I think ourlifestyles are quite different to that of the 30's...fuel costs may be relatively lower today (astounding as that thought is!), but we also travel considerably more for work, etc. For me personally, my community is also much larger and more spread around....hence I consume more fuel in order to visit friends and family than someone of a previous era would have.
KatinkaIssachar, I think ourlifestyles are quite different to that of the 30's...fuel costs may be relatively lower today (astounding as that thought is!), but we also travel considerably more for work, etc. For me personally, my community is also much larger and more spread around....hence I consume more fuel in order to visit friends and family than someone of a previous era would have.
