Tuesday, March 11, 2008

What's with gas?

The wholesale price for regular unleaded gasoline -- that is, the price refiners charge each other -- hit $2.7149 US yesterday. The spread between the wholesale price and the retail continues to grow as well; many parts of the US are paying $4 a gallon; here in Southern Ontario many gas stations are charging around $1.07 a litre (also $4 a gallon, give or take). This even though signs indicate supplies are actually increasing and demand decreasing.

At least in the States, they have multiple gas stations to choose from and there's a price spread between them, generally about ten to fifteen cents. Here in Canada, we're down to about four majors and some independents and inevitably the big guys charge exactly the same price. The savings at a discount, maybe 0.2 cents. Why? No wonder some people try to fill up at native reserves.

So basically, we the consumer get ripped off again; gouged and gouged and gouged. And because food and other supplies have to be transported, we're seeing prices go up substantially especially at the supermarket.

Isn't it time the competition bureaux actually did their job? I'm all for profits, but there comes a point when those profits only benefit a few and not society as a whole.

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