Gas prices

[GordonH]

I wonder when or if this will be seen at the pumps. :smt102

[Jonrox]

The cost of oil has nothing to do with the price of gas. When you start accepting that the market sets pricing, not the oil company, things will make a lot more sense to you. Supply and demand for gas sets the price, not the cost of oil.

[Glacier]

Picture from Vancouver today:

[Bsuds]

The cost of oil has nothing to do with the price of gas. When you start accepting that the market sets pricing, not the oil company, things will make a lot more sense to you. Supply and demand for gas sets the price, not the cost of oil.

That works only when the price of a barrel drops. When the price goes up then it is the oil companies excuse to raise prices. It's all Crap!

[GordonH]

Just check highest & lowest prices

Highest price Chevron 7525 Cambie St & W 59th Ave @ $1.503

Lowest price Shell 1505 Hugh Allan Dr & Pacific Way @ $1.209


Kelowna is @ $1.259

[Jonrox]

That works only when the price of a barrel drops. When the price goes up then it is the oil companies excuse to raise prices. It's all Crap!

It's their excuse when the price of oil goes up because we all foolishly believe gas prices are based on oil costs, so we accept it without much complaint. They've done a masterful job at getting people to think the costs have anything to do with pricing. They get to raise prices not only when demand warrants it, but we've also given them an avenue to raise prices even if demand for gas doesn't warrant it because collectively we can't comprehend basic economics.

[ixler8]

Soooo , price fixing is basic economics?

[Jonrox]

Soooo , price fixing is basic economics?

Is it price fixing when a gas war happens and every station is at the same lower price?

[Captain Awesome]

Gas companies make almost no money when it comes to retail gas operations.

[GordonH]

Interesting CA

Current price in Kelowna is $1.259
minus BC motor fuel tax.....$0.145
minus carbon tax..............$0.0556
minus Federal excise tax....$0.10
minus GST (should be)........$0.0584 (+/-) ⬅

Leaving...........................$0.90
local station.....................$0.05 (+/-) ⬅

Oil Company....................$0.85

2 mark by arrows could be little off, but not by much.

Please proof my numbers wrong.

[NAB]

The price of regular unleaded gasoline at the Kamloops rack (the basic price
gasoline retail operations in the Okanagan pay for their gasoline before
discounts, additives, local transportation, brand perks and kickbacks, etc)
is 80.70 cents/ltr as of June 2. If the current going price at the pump is
125.90, then that produces 45.2 cents per litre to be accounted for between
the rack and your tank (at the moment ;-) ).

By comparison, (the rack price at Vancouver on the same date was 89.70/ltr)
at Nanaimo it was 90.90 (presumably the difference of 1.2 cents/ltr gets it
across from the mainland) and the going pump price at Nanaimo is 139.90 - leaving
49 cents per litre to be accounted for with exactly the same components vs
vs taxes etc as Kelowna - ~3.8 cents more "take" after rack.

In both cases governments take ~36/37 cents per litre in taxes in BC outside
the GVRD and Victoria (which are higher due to local transit taxes), leaving
~9 - 10 cents per litre for the retail outlet in Kelowna and ~13 -14 cents
per litre in Nanaimo.

An "average" outlet in BC will pump 3 to 4 million litres a year (although
it can range in specific instances from only 1 - 2 million to over 10
million litres a year) - third highest in Canada after Ontario and Alberta.
So an "average" retail outlet in BC is doing roughly half a million $
annually in gross profit on gasoline sales alone, ....many less, but many
much more.

By the way, although a couple of years old now, this stat might be of interest to those who tend to relate everything with respect to current pump pricing to the "big oil companies".... or even worse to the futures or spot prices of oil itself.

""Only 1,988 or around 16 percent of all retail gas stations in Canada come under the price
control of the three major oil companies, although these same three marketers' brand names
appear on 4,793, or 38 percent of all gas stations. Of the almost 12,710 retail gasoline stations
in Canada, only 3,372 (26 percent) are price-controlled by integrated refiner-marketers.
The remainder – 74 percent – are price controlled by proprietors or companies who are not
involved in the refining of petroleum products. These "non-refiner marketers" therefore reflect
the majority of retail gasoline stations in Canada""

Nab

[xjeepguy]

minus carbon tax..............$0.0556

As much as I hate taxes , I hate this one the most ! It has to GO !!!

[GordonH]

minus carbon tax..............$0.0556

As much as I hate taxes , I hate this one the most ! It has to GO !!!

I hear ya

[NAB]

Published wholesale (rack) prices are revisited by their respective refinery operations daily GordonH. Rarely are they significantly different, at least for very long, among the various primary refinery/suppliers in any specific region. Perhaps a more interesting question that should be answered right now is why gasoline wholesale price at Kamloops rack (ex Alberta refineries) is running 8 - 10 cents cheaper per litre than gasoline wholesale price at Vancouver rack (ex Chevron Refinery right in the region)? Incidentally too, a week ago retail prices pretty much across the country had dropped from the previous week. Except in BC where prices rose, often dramatically in some marketing areas. Today we will get the survey as to what the situation nation wide has been over the last week and how BC compares to it.

Some other factoids include...

-As of 2010 there were 99 different "brands" of gas in Canada.

-The physical product largely originated from 15 refineries in Canada, operated by a total of nine different refining organizations.

-There were 71 companies involved in the retail marketing of gasoline, where they manage a network of two or more stations.

-About 6,500 individual outlet operators directly controlled the price at their own pumps (and still do)

-In effect those 6,500 individual outlet operators market their own gasoline (through their own control of the pump price) under the banner of their own brand of gas, or under the banner of a third-party brand owner and supplier.

-The provision of goods or services other than gasoline is of vital importance to the competitiveness and viability of retail
gasoline outlets, since the gross margin on gasoline itself is generally not sufficient to provide for the operating costs and reasonable return on the operation of these facilities. These other goods and services include such things as the type of pump service (full, self or dual), convenience store size, car washes, fast food, automotive service, and to what degree diesel fuel is offered for sale.

[GordonH]

http://www.petro-canada.ca/en/wholesalefuel/5531.aspx

https://services.shell.ca/postedprices/ ... ce_en.html

So at Shell rack price out of Kamloops.

.834 rack price
.145 BC motor tax
.0556 Carbon Tax
.10 Federal Tax
.05 local operator
.05304 GST (base on rack price + local operator x GST)

1.23764 - current price in Kelowna 1.259 = difference of .02136

Petro-Canada rack price out of Kamloops

.807 rack price would have a difference of .04998