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Going an extra mile for gas adds to price fluctuations

PATRICK BRETHOUR

Globe and Mail Update

Latest comment posted at 2:11 PM EST 09/08/06

Price at the pump can change every two hours as companies respond to bargain hunters ...Read the full article

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  1. gary blades from Halifax, Canada writes: I bet there are people who burn an extra 25 cents worth (or more) of gas while driving around looking for the best price so they can save 25 cents on a fill-up. As Homer Simpson would say: Duh-oh !!!
  2. Michael Provost from Toronto, Canada writes: 'Going an extra mile'? Mr. Brethour are you aware of the fact that you are publishing an article in Canada? If so, are you aware of the fact that Canada converted to the metric system of measurement in 1979? If you are incapable of adapting to that fact, I would suggest that you would be more comfortable writing for a US publication rather than 'Canada's National Newspaper'.
  3. Uma Mimi from Isir Beni, Canada writes: After seeing on th enews the other night that oils companies have posted record profits I have to question the rationale of these same companies when the public is told that gas prices are increasing because of strife in the middle east or a broken pipeline in Alaska. Bottom line is that it is all horse manure. These oil cartels are holding the people of the world hostage in order to boost profits. Most of the US gasoline comes from Canada yet the cost in the US is cnsiderably lower than what it is in Canada. WHAT THE HELL IS GOING ON?
  4. Dan Druff from Ottawa, Canada writes: I wouldn’t cross the street to save 25 cents on a coffee so why would I do it for gas? If I see a penny on the street I usually just leave it there. If you apply a dollar cost averaging method of buying your gas you will end up in basically the same place as everyone else that tries to time the market. It is all about the denominator of course, if you are filling a transport truck than I can see looking for a deal but for the average Joe you are wasting your time! Spend that ½ hour a day where you look for that deal that will save you 75 cents with your family. It’s a much better long term investment.
  5. John Agnew from Small Town Ontario, Canada writes: I don’t understand why everybody is so upset about the price of gas - do you see any body slowing down on our highways - I regularly go 110 KM/hr on our 400 highways - which by the way is 10 KM/hr over the speed limit - so I am breaking the law every time I use these roads - but if I don’t exceed the posted speed limit I get blown off the road by 95% of the drivers on the road (these same people who are complaining about the price of gas) - have you seen a truck go less then a 120 to 130 KM/hr lately - then you have the four wheel speeders doing 130 to 140 KM/hr dodging in & out between the speeding 18 wheelers - is it any wonder that our gas consumption and price is out of whack - the governments don’t care, they get their tax off the higher speeds/consumption/price regardless of the carnage on our highways and the enforcement agencies could even care less, except to issue warnings to all the potential speeders that they are going to have a blitz in a certain area - when was the last time you saw anyone pulled over - if the government or enforcement agencies had the least concern of the price of gas or the carnage on our highways, we would have photo-radar implemented right now for # 1 the public safety and # 2 our economy because of the impact higher gas prices have on it - some idiot is sure to say, but what about our privacy - if you are not breaking the law or doing anything wrong, you have nothing to hide to have privacy about.
  6. J Kooman from Toronto, Canada writes: 'retailers aim to hit a balance between a price that will draw in the most consumers while giving up the least amount of revenue.' The Petro Canada spokeman used a long sentence to say that his company is trying very hard to get the last penny from the consumers, to double or triple the profit.
  7. John Laws from Alberta, Canada writes: High oil and gas prices are a direct result of people's laziness. Get off your butt and walk to the store; leave your car in the driveway -- it won't get lonely -- and turn down the heat at your place. If people would put as much thought into how they could get away from using gas as they do in finding cheaper gas then they would be surprised how much they would save. Remember, oil companies are just like any other retailer, they need customers and they will only change their ways when you, the customer, start to change your buying habits. But as long as people stay programmed to the fact that they cannot go out of their door unless they get into their vehicle then oil companies do not have to respond to you because you are their slave.
  8. Miles Thompson from Canada writes: $1.05 a litre in Toronto, eh? We are SO LUCKY in Nova Scotia. Rodney MacDonald's Tories have stuck us with regulated prices -- how about $1.22 / litre? And it will likely go higher on Friday. Regards - Miles Thompson PS How does one get paragraph breaks in these comments? Everything runs together! /mt
  9. Brian McIntyre from Halifax, Canada writes: There is no compition here in Halifax or for that matter in the Maritimes. My parents live in Ottawa and tell me that if you wait untill after 11:00 PM the prices drop. I think that the Irvings have too much of a monoply here and our governments are bending over backwards to please them! Time to start pushing for more compition in the oil and gas industry. Every other service providers have it!
  10. BC Refuge in AB from Canada writes: Mike from TO, 'Going the extra mile' is an global expression for putting extra effort into something above and beyond what most people would do. It has nothing to do with metric. Give the anti-Americanism a rest for a day folks.
  11. Marcus Leja from Calgary, Canada writes: Is there any surprise why there is no loyalty to gasoline retailers? Gasoline prices often jump 10% when the price of crude oil only increases 2-3%, gasoline retailers do next to nothing to lobby the producers (if separate entities, which is becoming less and less common), or OPEC to control crude prices, and prices barely come down when crude oil drops in value. And then you have companies like Petro-Canada lobbying the consumer to sympathize with the fact they have no control over the price of crude. Let's all feel bad about records profits. :)
  12. Irene Cornwell from Morinville, Canada writes: When the rising cost of energy impacts the cost of all goods and services, small businesses will fail and large business will simply pass on the cost. Politicians will increase their expense accounts and the average person will continue to lose ground. I hope the 'academics' are working on this one.
  13. Erik Richards from Winnipeg, MB, writes: Michael (#2), get a grip, will you? Yes, Canada uses the metric system. But that doesn't suddenly mean that all expressions or sayings should be 'converted'. Would you really say such things like 'Give them a centimetre and they'll take a kilometre'? Would you refer to the Canadian cousin of an inchworm as a twoandahalfcentimetreworm? And I'd better not hear you ordering a quarter pounder at a restaurant. Sheesh. You'd think once the metric system came along such imperial measurements had been banned or something! There are a lot of things that need nitpicking about than whether or not a headline contains a non-metric unit of measurement.
  14. Simon Dimuantes from Toronto, writes: Re: Michael Provost, #2: Canada may have switched to metric in 1979 (and it is a far superior system to the Imperial system, you'll get no debate from me there), but would mind telling me when the clichés and idioms of our culture switched to metric? Oh that's right, they never did, and likely never will. 'Going the extra mile' is just a saying, it has nothing to do with whether or not our country is metric. Only a pointless nerd would say, 'going the extra kilometre.' I suppose you prefer the expression, 'The whole 8.3077 metres,' versus 'The whole nine yards'? Get real, dude. Also, just out of curiosity...answer this question for me: How tall are you? How much do you weigh? Let me know if the numbers that popped into your head were in feet and pounds, or centimetres and kilograms.
  15. Carlos Segundo from Canada writes: The price of gas may be hurting some people, but apparently not in my neighbourhood. I live on a recreational lake, and on the long weekend boats of every size and shape roared around from early morning to late night. All day long I hear the sound of ATVs (the new toy of choice for the entire family) running up and down the road. My neighbourhood gas bar owner is laughing all the way to the bank - people come in with trailers full of gas containers to fill. One guy paid $120 for a weekend's gas for his boat. And then there's the highway past my village (on the way to Alaska): entire suburbs on wheels - RVs the size of small houses towing SUVs, huge boats, and more ATVs. Who says gas is too expensive?
  16. Robert Pike from Kitchener, writes: Alberto. Newfoundland. Do we not have oil and gas? We live in Canada and we not only pay more for gas but the quality isn't as good, so I hear? Prices flucuating more than the weather? Who the hell do we have elected? It's strange how up through school you learn of logic and what things make common sense then you start living in the real world and everything you thought you knew gets thrown out the window. Next election I hope they have some candidates between the ages of 6 and 12 then maybe we might have 'some' common sense thrown into government. This not only applies to gas prices but also to new homes. The same type of stupidity in government seems to apply to protecting new home buyers as well. It's absolutely pitiful how issues such as these are being handled.
  17. Rick Harris from Whitby, Canada writes: ''If you always have the highest price, people just stop looking at your sign,” said Jon Hamilton, spokesman for Petro-Canada.' I stopped lookingn at Petro-Canada signs a long time ago.
  18. X. T. from Waterloo, ON, Canada writes: #8: The government of Nova Scotia is so considerate to you that they put a law in place to ban Sunday shopping. Thereby saving you a lot of gas by not going shopping on Sundays. And so the demand for gas drops, so does the price. This really works out, eh?
  19. cedric macleod from Fredericton, Canada writes: Well Said John Law (posting #7). It is not a right to drive, it is a luxury!! We all need to fight our fundamental fixation on driving and the price of fuel. If we had to pay the REAL price for fuel, ie. cleaning up after oil spills, the burden of pollution caused from extraction and burnign of fossil resources on our health care system, well...we wouldn't pay, cause we would walk or take public transit, or run clean-fuel vehicles as the fuel price would be prohibitive. The biggest problem is, we won't be able to afford to pay for the harm we are causing now with our short sightedness. My children will be burdened with it instead. Wake up Toronto, Vancouver, Calgary, YOU HAVE the public transport options, get out and walk, take the train, meet someone new! Gas prices aren't the issue, it's the way be run our lives everyday, that's what needs to change.
  20. Richard Picard from Chelsea, QC, Canada writes: I have to agree with post #15 on this one. Gas is NOT too expensive. If we were all driving around in Smart cars, that would be one thing. But judging by the number of SUVs, RVs, boats, ATVs and V8-powered vehicles of all sizes, gas needs to go up another $1.00 or two/litre. Then these complaints will not ring so hollow. BTW: How much is a litre of bottled water these days?
  21. Stephen Fultz from Dartmouth, Canada writes: My back is getting sore carrying the oil companies and the government as both make outrageous sums. They can justify why they do what they do and show little remorse in doing so. Where are the socially concious leaders of Industry and Government.
  22. Cassandra Incredulans from East Elbow Sask., Canada writes: I have to take exception to the reference to 'collusion' among price-conscious gas buyers posting PUBLICLY-POSTED gas prices on Web sites. When I took Economics 101, this was called 'perfect competition' for the business of an 'informed buyer'.
  23. Dan L from Winnipeg, Canada writes: Since every gas station charges the exact same price can we please drop the one-tenths part of the price. No other commodity is priced like this. It's ludicrous.
  24. Richard Hopkinson from Edmonton, Canada writes: I am convinced that Oil companies are price fixing. I know theres some real cute answers out there as to why all the gas stations charge the same, but I think its all BS.
  25. Born Again Pagan from Southern Ontario, Canada writes: Price fixing, price gouging, call it what you want but we all know we are being ripped off big time by the oil companies that find any excuse under the sun to raise prices. It is the all consuming, mind boggling, selfish reasoning behind corporate greed. When the middle class can no longer afford to drive or own cars then the oil companies might wake up and realize they have outpriced themselves into oblivion. Considering we are a nation rich in oil, there are other solutions to solving these problems but corporate and goverment greed will never result in what is best for 'us' but only what is best for their stockholders.
  26. T W from Ottawa, Canada writes: I can't blame people for bargain hunting any more than I blame oil companies for trying to maximize their profits. That's how the system is designed. If the price of gasoline is that upsetting, then find a way out of the system. Hard, I know, but what to do? Personally, I can't wait for prices to hit $2 per litre or more. That'll hopefully shake things up. One thing I'd like to see implemented at that point (or even now) is the elimination of fuel taxes for public transit. That way those who want private transport can pay the full social cost, while those who can't or won't afford it can use better prices public transit systems. To poster #3 - Canada supplies 10% of US oil. While this is more than any other supplier (except US own domestic supply), it certainly isn't 'most'.
  27. Terry O' Shaughnessy from Bring Cash (BC), Canada writes: Post # 2 Michael: I'm sure the writer knows the metric system as most of us do. You can't debate the advantages of the system of weights and measures in comparison to the Imperial system. However when your largest trading partner still uses the Imperial system, why would you convert to metric? Another Trudeau era idea! However the US military uses the metric system: are you happy now?
  28. M Kwad from Toronto, Canada writes: The price of gas is not really that high... measured against inflation over time, it's been extremely cheap for years, even after the last series of spikes. Still, those aren't calming words to drivers who have seen rapid growth in prices over the last two years. That being said, the price can't possibly be as high as people complain they are, otherwise you would see people driving nothing but Toyota Yarises out there. Oh, and they would carpool to work (do a count on your way home from work tonight). I don't think it's the high price of gas that really bugs people, it's the massive price fluctuations. Ten cent price fluctuations in the span of a 24hr period have become the norm in Southern Ontario, leading to a lot of consumer frustration.
  29. Kay Ay from East of To, Canada writes: The price of gas in my town jumps about 10 cents every Wednesday at supper time and drops 3-4cents by the next morning (so as to look cheaper for the weekend). Despite the fact the town only has 16,000 residents there are at least 8 gas stations; the proximity to the 401 is a factor as well it's only an hour commute to To.
  30. Joe Canada from Brampton, Canada writes: I really dont think that there is a oil shortage and that the big companies are just charging more money by saying there is, how can they say we have to raise prices on gas and oil products when they are making record profits? come on 4 billion in 3 months is what these companies are making. we as customer are getting ripped off. and if you think that if we do not use gas they will lower prices, ya right they have share holders to apease they now have to keep these profits or their stock will drop. so if and when we do cut back they will just have to charge more for their product. Think about it.
  31. Popcorn & Beer from Halifax, Canada writes: The only competition in the oil industry in the Maritimes is who can raise the price the fastest. No government has any interest in doing anything about outrageous fuel prices because of the taxation cash cow that goes along with higher prices.
  32. J S from Hamilton, Canada writes: Why is it that people think any company making a big profit is `gauging' consumers, or 'holding them hostage?' Is it possible that they are just good business-people? Personally, I think that anyone who doesn't understand why prices fluctuate so much should take a first-year, remedial economics course. Price is determined by supply and DEMAND. Almost all of the daily fluctuations you see in prices are demand related, with regional and competition-related variance in the prices. To all you people who rush out and buy lots of gas `before the prices go up,' well, you are CAUSING the prices to go up even further by introducing a spike in demand! Would you expect the gas companies not to react to this? Why would they ignore a source of profit? These companies are not out to make your life as comfortable as possible, they are out there to sell gas and make money. In my mind, they are just doing what every business on earth does, maximizing their profits. The only difference between them and any other company is the size of their profits. I'd also like to comment on the poster who said `Most of the US gasoline comes from Canada yet the cost in the US is cnsiderably lower than what it is in Canada.' Everyone in the world faces the same price for crude. Otherwise, people would be able to buy it from a low price country, and sell it in the high price country and make costless profits. It's called arbitrage. The reason for the gas price differential at the pump has a lot to do with taxes and transportation costs. Canada taxes it's gasoline by much more than the US, an amount which changes by province. Anyhow, my final point is that to all those people who don't know how markets work, learn a bit about it before you complain. Oil companies have never been found to collude, and I think everyone should cosider the possibility that it's because they're not colluding.
  33. Bill Smith from Ottawa, Canada writes: My secret for saving on gas? -- drive less.
  34. Rick Czarnota from Calgary, writes: Are all you people this ignorant? First off the oil companies don't set the price of oil. Neither do the politicians #16. It is a commodity priced on an open market and if you had any brains you would go buy yourself an oil futures contract. Second the higher price of gas is due in large part to a continental shortage in refining capacity. The US does have lower gas prices than in Canada for the simple fact that they pay a lot less tax for each fill up. Imagine that...being overtaxed in Canada. Where on earth did you people come to the conclusion that cheap gas was a right?
  35. Nicole Cormier from Armstrong, British Columbia, Canada writes: Where exactly are those HYDROGEN FUEL CELLS, anyway?? Why aren't SUV's ILLEGAL?? If everyone hates paying for gas as much as I do, and is equally bothered by the fact that their vehicle is contributing to pollution that is seriously threatening to choke us where we stand, why are people not demanding alternatives, and loudly?? Things don't have to be this way. There are other options. And until people start to smarten up and demand them, I HOPE gas prices continue to go up, and up, and up, until nobody can take it anymore...
  36. m guptill from East Coast, Canada writes: I think we should all be happy we don't live in the UK......end of June 2006 the comparison was as follows: USA price per gallon = $2.88. Canada price per gallon = $4.55. UK price per gallon = $7.92. Stop complaining!!!!!!!!!!!!!!!!!!!!!!!
  37. J R Hannis from Victoria, Canada writes: Thank you Rick, Number 34....cheap gas is not a right. So many of the posters believe that they are entitled to cheap gas ...the feeling of entitlement to the polluting fossil fuel. I also agree with previous posters...switch your habits, get rid of the gas guzzling huge mega-SUVs and quit yer complainin'!! Spend some time in Europe or about 100 other countries and maybe you will understand how good we have it...
  38. Timothy Nessus from Somewhere, Canada writes: Yes another story that MISSES the point. I wonder how does G&M pick a story? Getting a list of possible articles (sorted by 'dumb' level) and throwind darts at it? The POINT is that there is NO shortage of oil. Granted. There MAY be shortages in the future, but right NOW there arn't any. If you don't believe me, when was the last time YOU went to a gas station and they did NOT HAVE ANY???? This is nothing but shameless gread in action. Furthermore, taking into consideration that Canada EXPORTS oil, this is adding insult to injury!!! Why can't we have a national policy of WE (because it is OUR oil) FIRST????
  39. alex simoes from montreal, Canada writes: All i ever hear are excuses for the high price of gaz or oil. Ecuses i don't need, they rack in millions but do the minimum to upgrade, case in point the BP pipe line. Ask the same question to our refiners and the same answer will come out. How about when was the last refinery built? Why would they, they are running at near maximum capacity with huge profits to boast. I guess we'll have to wait for our own disasters before anything is done.
  40. Pietro Martienson from Toronto, Canada writes: Price-fixing is a naive measure that ends up killing an economic sector with red tape. The petrol giants, however, must be stopped from gouging consumers with their pricing fluctuations. My solution: a new law requiring three things: each chain's base price may only be increased 50 times per year; each chain must base its price on the 26 week moving average crude sweet oil price, and must publish the formula according to which it determines its price; finally, thes price formulae must be bidded for against the other oil companies every three months, such that no two oil companies may have the same formula or the same price as another oil company during any given fiscal quarter. Far-away stations may charge a fixed premium based on their own companies base price, e.g. 2 cents higher than the most cost-effective locations for instance. Problem solved. Oh, yeah, and to stop the big six banks from their usury and cartel racketeering on low interest and high fees: A new law stipulating that only 5% of any charter one canadian bank's gross revenue may come from fees, the other 95% being from the interest differential between borrowing and lending rates. Another problem solved.
  41. C M from Toronto, Canada writes: The oil and gas companies are not fooling me with their rhetoric about having to change prices to stay competitive. Prices are changing every two hours to maximize profitability - if the companies think they can gouge us for another couple of cents per litre, they'll change the price. If the Canadian government were truly serious about doing something about gas prices and the environment we'd be investing heavily into alternate fuels and electric cars. But oil runs the world these days, doesn't it...
  42. M D from Ottawa, Canada writes: Sell your car and use the proceeds to buy shares in the Oil companies. Face it, energy has a license to print money. We as a culture must re-arrange our suburban lifestyles and car-culture. Until that happens, I'm financing my retirement on your gas guzzlers.
  43. M R from Markham, Canada writes: This fluctuation has nothing to do with the consumers. Consumers like us have to adjust based on the gas stations pricing. They have full control...years ago...it used to go up before the weekends, then Mondays, then it's been erratic. Since the high prices of gas, the price goes down at night only - why? Most people would buy gas during regular hours(6 am to 8 pm) and that's where they squeeze the customers. What about stations across the street selling at different prices? It that becacuse of consumers buying habits?
  44. Steve Goldstein from Toronto, Canada writes: This is the most pathetic excuse for oil companies to reflect price changes back to the consumer. I don't see other stores or companies changing their pricing daily based on the amount of customer traffic thru their doors. Competition is suppose to lower the price, unlike the big oil companies left in this country who collude on the price they will gouge the consumer.
  45. Keith Baker from Belfountain, Canada writes: I don't mind fluctuating prices, but the rate at which they fluctuate. I don't bother hunting for a tenth of a cent savings in price, but buy the fuel when I need it and pay the current price; however, if I ever figure out the timing of the 5 cents a litre movement in pricing every few hours I'll be able to save enough cash for a few pizzas every year. And to Simon Dimuantes (Comment 14): weight is in Newtons & mass is in kilograms (or grams, depending on if you are using mks or cgs). Just though I should stir the metric pot a bit...
  46. Joe Mead from Winnipeg, Canada writes: There are no deals here in Winnipeg. All gas companies are in collusion and jack their pricing at the same time. By the way - did you know Canada is self sufficient in oil? THe USA is not. When there is an oil crisis in the USA, why do our prices here in Canada go higher than USA prices?
  47. Carl Burns from Halifax, Canada writes: # 2 Mr. Provost. For starters it was 1980 when the Trudeau government forced the Metric system on Canadians causing millions of dollars of losses for businesses who had to convert machinery to a metric measurement. Trudeau did this in part so that he could pull off the largest rip off of Canadians in the country's history. By switching from the Imperial system where a gallon was 160 oz. to the metric system where four litres approximates a U.S. gallon of 135 oz, he was able to strip more money from Canadians' pockets than the Tories would have under the 18 cent per gallon increase in the price of gasoline. What Trudeau did was to convert the 18 cent increase to a 4.5 cent increase per litre thereby keeping the same increase but also reducing the amount of gas a consumer would receive had the Tories not been defeated in a non confidence motion on that very issue. Trudeau's deception in this is just one of dozens of anti-democracy actions put forth by this charlatan. No politician did more in this country's history to attempt to turn Canada into a socialist banana-republic from the democracy it once was. Further, many stores are listing weights and measures in the Imperial system because it is an easier system to use and remember despite claims that celcius is simplier. Recently a CBC reporter speaking about the possibility of flash flooding announced that the region affected could get up to x amount of centimeters of rain. Millimetres is the correct measurement for rain (millilitres for liquid measure) but if the peoples' broadcaster can't get it right, how can the people be expected to. People are relearning weights and measures in Imperial because it relates so easily to everyday things such as references to distance "a country mile" "missed by inches" etc. The use of metric has not been a success in Canada as is evidenced by businesses using either Imperial measures or using a combination of the two.
  48. KR F from Citysmog, Canada writes: (ahem) excuse me, #38, Nessus, I actually live about a 20 second drive to an Esso that is on the way to the 403 QEW and actually, there have been quite a few times I have seen the price at the pumps at $0 because they have sold out of gas....just to let you know that it does happen. Stations do sometimes run out of gas. I understand your point though.
  49. Bill Hansen from Vancouver, Canada writes: I can't believe we can expect any action from this Government which depended even for it's minority on the Alberta oil patch. A cousin who works in the oil and gas industry said after the election that "we" meaning Albertans "were so scared of another National Energy Program that we backed Harper" The oil and gas industry in Canada is dominated by Americans who love Bush and Bush's own personal fortune is oil based so neither Bush or Harper will likely care much about alternative fuels. It is up to those of us who are parents & grandparents and care about the future existence of our children and grandchildren to change things either by putting pressure on this Conservative Government or by pressuring the Opposition parties to throw them out and do something themselves.

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