Why is gas still so expensive?

[m5racer]

Yes, gas is cheeper then it has been for quite some time (begining of April) yet gas prices are still soooooo expensive. I know in the us they are paying something like 70 cents / L while we are still paying 94. Gas is at a 14 month low, yet gas prices are not moviving. I hate being ripped off, and i hate that our gov can get away with ripping us off! If anyone doesent know a great sight where you can check what gas prices will be tomorrow is called:

http://www.mcteague.ca/WebPages/gas_price_today.htm

[audipotential]

Yes, gas is cheeper then it has been for quite some time (begining of April) yet gas prices are still soooooo expensive. I know in the us they are paying something like 70 cents / L while we are still paying 94. Gas is at a 14 month low, yet gas prices are not moviving. I hate being ripped off, and i hate that our gov can get away with ripping us off! If anyone doesent know a great sight where you can check what gas prices will be tomorrow is called:

http://www.mcteague.ca/WebPages/gas_price_today.htm

Well..It could be worse. We could be paying 1.47 for super like we did in the summer.

The way I see it...This is just a bonus right now. But crude oil will maintain at 90-95 dollars a barrell In a little bit. We should just take advantage right now but understand that we are grabbed by the balls. If the gas is cheap...Cool
If its not...no one can do anything about it anyways.

[Tanner]

It's always easy to increase prices but much more difficult to lower the prices (sticky price)



Price per litre right now should be lower than where it is right now at the pumps. Having said that, I'm pointing my finger at the Canadian oil companies in pocketing this extra cash, all their other reasons saying why it is where it is is complete BS.

But in the end, it could be much worse.

[drevil2k2]

The gas companies may want to keep their margins fairly high despite the dramatic drop in crude.

[Tanner]

Remember it's just not gas prices. I don't expect a drop in prices at the grocery store either.

[karmad]

gas needs to fund this war

[Tanner]

US perhaps. But then they're gonna need a lot more to get out of a $10 trillion debt.

[Louis J.]

Gasoline prices do not adjust to changes in the price of oil immediately. Gasoline prices are largely predicated upon the value of oil futures and therefore run about 30 days behind fluctuations in the price of oil.

[Tanner]

Gasoline prices do not adjust to changes in the price of oil immediately. Gasoline prices are largely predicated upon the value of oil futures and therefore run about 30 days behind fluctuations in the price of oil.

You would think so, so then why is gas price always going up and down, more so when the barrel price going up being reflected in the gas price as of 12AM? It used to be that gas prices would fluctuate slowly and changes were typically updated near the end of the week years ago.

[hoganalley]

geeeeeezzzzz.......I don't understand why this is so hard to figure out.

According to Tanner's chart, we're about 0.10 above what it was when oil was this price before.

Here's what they do. Oil goes up, gas goes up. The general rule is that you should pay for what's in the ground, not what they're buying now, but that's not the way it works.

It used to be we payed for what was there. Now, they charge more based on what they have to buy. You aren't paying for what's there, you're paying for what will be there.

The only reason gas isn't where it was when oil was this price before is said with one word.


Greed.

[DeMOROlized]

geeeeeezzzzz.......I don't understand why this is so hard to figure out.

According to Tanner's chart, we're about 0.10 above what it was when oil was this price before.

Here's what they do. Oil goes up, gas goes up. The general rule is that you should pay for what's in the ground, not what they're buying now, but that's not the way it works.

It used to be we payed for what was there. Now, they charge more based on what they have to buy. You aren't paying for what's there, you're paying for what will be there.

The only reason gas isn't where it was when oil was this price before is said with one word.


Greed.

Keep in mind the CAD$ is also significantly lower vs. USD$ than when oil was at this price before, and oil is priced based on USD$.

[Tanner]

Here's the same thing but price in USD. Note that price at around 9/16.



Gas also to fall in the 93 cent range tonight.

[Louis J.]

You would think so, so then why is gas price always going up and down, more so when the barrel price going up being reflected in the gas price as of 12AM? It used to be that gas prices would fluctuate slowly and changes were typically updated near the end of the week years ago.

Because the price of futures change every day. Also, gasoline prices are "largely predicated upon the value of oil futures", not exclusively. There are other components, some of which I'm sure are competitive, which is why you see the price of gasoline drop off in off-peak hours.

Prices used to fluctuate slowly because the price of crude used to fluctuate slowly. The price of crude doubled in four years between 03 and 07, a very steep climb but much slower than the period between 07 and 08 when prices doubled yet again before crashing down to 2007 levels.

Oil is trading within the range of 2007 prices and we're also paying within the range of what we paid for gas that same year.

[Louis J.]

Moro has a good point and Tanner...that's a great chart. I wonder how much of the "low" gas prices is the dollar and how much of it is some sort of subsidy.

[MacDaddy]

whatever, make more money, thats what i do.

at least theres less of those stupid truck drivers blocking my view and getting in the way with their clumsy old jalopies.

[sakimano]

WHAT? you didn't see a commensurate rise when crude hit $147...your own chart proves that. By your rationale, you should have patted the oil co's on the back because you were underpaying 3 months ago! Blaming oil companies is ghetto...makes one sound like a pauper who hates anyone/anything for their prosperity. The fact is the 'big bad oil companies' are turning about 11% profit margins (mediocre in the business world). When they were future selling oil in the mid $100s, they were only marginally better. When oil was $12/barrel in 1998, they were nearly going bust, and shutting down oil production around the world...but nobody was offering to help them out when times are tough...so why complain when they're finally turning a profit? They're not a fking charity! Where do you work... a bank? Why not complain that banks make a profit. A body shop? Why not complain that the shop owner keeps a profit.

Comparing US gas prices to Canada isn't really fair...don't forget currency exchange. While oil has dropped precipitously this fall, so has the CDN $...to the tune of 20%. What is oil and wholesale gasoline priced in? Yes...US$.

Finally, gasoline you put in your car is produced with oil that was priced/sold 6 months ago, so there's always some lag/blending of pricing. That's why gas prices didn't skyrocket in the summer when oil hit $147...and that's the same reason gas prices won't hit 70 cents/litre until oil has put some serious time in at these levels, and the C$ moves a bit stronger.

It's always easy to increase prices but much more difficult to lower the prices (sticky price)



Price per litre right now should be lower than where it is right now at the pumps. Having said that, I'm pointing my finger at the Canadian oil companies in pocketing this extra cash, all their other reasons saying why it is where it is is complete BS.

But in the end, it could be much worse.

[Tanner]

Hey sakimano, take it easy okay?

[sakimano]

okay. just tired of this debate about gas prices. fact is it's a commodity...and the market moves the price, not the oil co's.

[Tanner]

Out of curiosity I looked at past earnings for Petro Canada, all the way back to 1993 all in millions of $:

93 160
94 262
95 196
96 247
97 306
98 49
99 318
00 859
01 846
02 955
03 1650
04 1757
05 1791
06 1740

Yes 1998 wasn't a great year for them, that was when the barrel price of oil was around $18. There was a nice healthy increase in net earnings in 2003, trying to find out the big increase but the annual report is too much to read right now :)

[sakimano]

wow...that was fast!

now put revenue beside the earnings to see the profit margin. It's dismal.

Out of curiosity I looked at past earnings for Petro Canada, all the way back to 1993 all in millions of $:

93 160
94 262
95 196
96 247
97 306
98 49
99 318
00 859
01 846
02 955
03 1650
04 1757
05 1791
06 1740

Yes 1998 wasn't a great year for them, that was when the barrel price of oil was around $18. There was a nice healthy increase in net earnings in 2003, trying to find out the big increase but the annual report is too much to read right now :)

[J Ozzie]

you ear that exron (esso) made the most money this summer runnin in at 4.6billion off us!!! It was just on the news this morning

[jefferson88]

Announced yesterday... PROFIT IS SO DISMAL. Poor Oil companies.

Exxon Mobil Corp., the world's largest publicly traded oil company, reported income Thursday that shattered its own record for the biggest profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter.

Article

....and that's one quarter's earnings, nice try though

[MagnusS4]

gas dropped quite a bit no?

[sakimano]

Dear justcantread88

I said their profit margins are dismal...not their profits. Read the screen next time. Exxon revenue was $137 billion, so the profit margin is 10.8%. They're not making a killing by ripping you off...they're making a 10.8% margin which is positively embarrassing considering how good conditions were (record oil price + weak US dollar = perfect scenario for Exxon). What'd the stock do after they posted those earnings? Oh...it sold off despite a massive rally on the equity market. Wonder why?

Your average convenience store makes a better profit margin than 10.8%. So does the restaurant you eat at every week...McDonalds' Q3 profit margin was 19%. Royal Bank was 18% even though we're in the middle of a financial crisis.

The $14 billion in quarterly earnings is easily overwhelming if you're busy waving your 'what about the little guy' flag with no consideration for the simple math here, but have some perspective...it's THE BIGGEST PUBLIC COMPANY ON EARTH.

if Exxon broke up into 100,000 different little oil companies with different names and posted a 10.8% margin for the quarter at $145,000 each, would you be less offended?

go re-read my original posts, and then read a more relevant analysis of Exxon's numbers (not The Connecticut Post you pillock!). Then sell your Audi and stuff your smart ass remarks

http://blogs.wsj.com/marketbeat/2008...billion-trick/

Announced yesterday... PROFIT IS SO DISMAL. Poor Oil companies.



Article

....and that's one quarter's earnings, nice try though

[jefferson88]

wow. First its a public forum so you don't need to swear. Its makes you look ignorant. Second, I see your second year in University is paying off well. However, your anger management issues are likely to hold you back in life. Its clear from your posts here and on other forums that you are on constant patrol for an internet fight. Well, internet tough guy, I will not be obliging today... So find someone else to justify your oil company rape to.

[sakimano]

jefferson...your apology is accepted. I guess your deflections are an attempt to save face.

how does swearing make me look ignorant? Ignorant, according to my dictionary, would imply I don't know what I'm talking about. Fifteen years in finance however, tell me I do.

listen...just because I used colorful language (which I've since edited to de-knot your knickers and anyone else on this free speech public forum who hasn't watched an R rated movie since birth) doesn't mean you can skirt the issue...you were wrong, you were rude, and you have been corrected.

Love

Correctoooooo

wow. First its a public forum so you don't need to swear. Its makes you look ignorant. Second, I see your second year in University is paying off well. However, your anger management issues are likely to hold you back in life. Its clear from your posts here and on other forums that you are on constant patrol for an internet fight. Well, internet tough guy, I will not be obliging today... So find someone else to justify your oil company rape to.

[DSRB]

I agree with Sakimano/Correctoooooo. I'll rev my S4 and think of all of you other guys whining.

Quit complaining about gas prices. Buy the oil and gas companies instead. It should be mandatory when you buy a car.

People that ride the bus can complain about gas prices.

[stef2.7t]

....and its going down to 85 cents....so everyone stop complaining. Bunch of children. When you buy a turbo car...expect to pay for it, one way or the other. "oh my turbo blew up, k04s are too expensive...ooohhh my car is not fast enough, and APR is too expeeeeensive..." you drive an audi....what'd ya expect? If you don't like the gas prices, trade your M5 or your Audi for a Forrd Festiva!!!

[jefferson88]

I wasn't deflecting anything... Oil companies average a 10% profit margin consistently. All those other companies you mention as well as various types of business rise and fall all the time. Its like comparing apples to oranges. Speculation causes gas prices to rise at a rapid rate yet they take twice as long to go back down... thats the complaint.

In Venezuela they pay cents per litre... Because the government makes it that way. The type of car you have doesn't mean you can't disagree with the way the country uses our natural resources. Its all about the free speech as you say....

[sakimano]

My point was that the margins suck...10% profit margins are not great. Your point was that they're making super-profits on our backs. You were just flat wrong and rude about it.

Venezuela? Last time I checked, if you want to live somewhere with a violent psychotic dictator, cheap petrol is the least of your worries. Have you been to Venezuela? Until then be careful what you wish for.

If we paid 3 cents per litre here, our government would quite simply have to claw $20 billion out of either your paycheque, via increased taxes, or from your services (cuts in health care/education/infrastructure) . Of course you could always go to Venezuela, Iran, Iraq or the Emirates...oh wait...no democracy there either. Hmmm...

Benevolent dictators are hard to find in my history books.

I wasn't deflecting anything... Oil companies average a 10% profit margin consistently. All those other companies you mention as well as various types of business rise and fall all the time. Its like comparing apples to oranges. Speculation causes gas prices to rise at a rapid rate yet they take twice as long to go back down... thats the complaint.

In Venezuela they pay cents per litre... Because the government makes it that way. The type of car you have doesn't mean you can't disagree with the way the country uses our natural resources. Its all about the free speech as you say....

[MagnusS4]

Go Fill Up 85.1!!!

[goldn]

Go Fill Up 85.1!!!

just did.
41.778 litres @ 0.981 for supreme.
$40.98
gotta love it.

[Louis J.]

^^^ Probably due to the stronger CAD. $1.15 today.

[audirs]

^^^ Probably due to the stronger CAD. $1.15 today.

think u got that backwards bro. 1 USD = 1.14 CND (1 CND = .86 USD)

[jefferson88]

[QUOTE=sakimano;3029477]
Venezuela? Last time I checked, if you want to live somewhere with a violent psychotic dictator, cheap petrol is the least of your worries. Have you been to Venezuela? Until then be careful what you wish for.QUOTE]

I would love to see an example of A) his violence and B) his psychosis...

[sakimano]

grasping at straws? apology accepted. I'm ending this.

I would love to see an example of A) his violence and B) his psychosis...

[jefferson88]

Guess you couldn't find anything.... Thanks, apology accepted

[sakimano]

you're so ridiculous. Ok db...read on. Start with his childhood...then move on to his violent military coup to overthrow the Venezuelan government in 1992...then go read some of the SCATHING print about his regime. This is a pretty nice bio...written with kid gloves on. If you don't like this, go watch some choice clips on youtube. Then leave me alone. Listen...you lost your argument about big oil...you lost this argument now. Just stop posting. If you have any further bitching to do, PM me. Nobody else here cares to see you embarassed any further.

http://www.dictatorofthemonth.com/Ch...05ChavezEN.htm

Guess you couldn't find anything.... Thanks, apology accepted

[jefferson88]

Actually nobody else cares period. Don't believe everything you read... People love him and he is a huge advocate for the poor. I notice you didn't mention the US sponsored coup against him. if you still think oil companies don't rape people you need to look at how speculators play with the prices without good reason. Prices dropped again today because there is surplus even though it was a "crisis" a few months ago, yet they will still turn a sweet profit... By the way I wouldn't use dictatorofthemonth as your news source. Maybe you'll make it on there oneday for the way you rip on anyone who has anything to say on the various forums you post on.

[sakimano]

hmmm...I've made about 400 posts on Audizine. I've ripped on about 5 people, who were mostly being douchebags (like you) or who were being rude to me with little prompting (like you).

MODERATOR...is there a way to end/close a thread, or for me to block a member?

p.s. jefferson...weren't you the douchebag on audiforum.ca who was saying he never goes over the speed limit, and was admonishing everyone for speeding? hahahaha...this all makes sense no. Seriously dude...trade your A3 for a GTI and go hang on the vortex or something

By the way I wouldn't use dictatorofthemonth as your news source. Maybe you'll make it on there oneday for the way you rip on anyone who has anything to say on the various forums you post on.