tidal shot
Crew Member
$146.9 a litre right now on the island, I bet we see $1.75 by summer! i cried putting $400 in and not filling my boat fully, now $600.00 - $700.00 to fill, wife may say no more then yes this summer!
Sky rocketing fuel prices
- Thread starter tidal shot
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tidal shot
Crew Member
$0.10 a litre hike isn’t what we are going to see! They are already predicting 25-30% increases for this summer, BC and the eastern provinces are going to be the hardest!
hali hunter
Member
No gas station has run out of gas so i agree that there is no scarcity of supply.
wildmanyeah
Crew Member
We have just been used to living in a world where there has been a glut in oil and gas. Opec started making cuts in 2016 in supply.
Vancouver gets more of its gasoline from coastal refineries down the coast. Kamloops, Prince George get their supply from Edmonton, Calgary, Saskatchewan. Twice a year the refineries retool their factories, In spring like right now they switch from producing large amounts of heating oil and Diesel to Gasoline. Then in the fall before it gets cold they do the opposite. This is a good thing!! if they did not do this the Supply and demand picture would get out of whack. However, its predictable and traders like to take advantage of this fact so they drive up the prices. There has also been a global drawn down of gasoline supplies so these things get amplified. Add that to the fact that we get taxed 50 cents a litre and we find our self in the environment we are in.
On a bit of a side note, My bosses, Boss was in a big convention with Suncor, Husky, Shell ect.. And asked them "how come Asphalt is 800 bucks a tonne when its a waste product and we used to get it for next to nothing" Their response was basically "because we set the market." This was basically after the advent of the Coker.
Also pipelines won't affect the price of gas we will see, They will only help the margins at the refiners (Edmonton, Calgary, Saskatchewan) In fact they would most likely drive up the price of Gas in thoes markets.. Gasoline is traded at a global level. We are a coastal city that means we get Global markets.
https://www.theglobeandmail.com/rep...canadas-oil-subsidy-to-the-us/article6994747/
"Do the math on some 2 million barrels a day of heavily discounted oil exports and suddenly you're talking about an enormous wealth transfer from Canadian oil producers to American refineries. (Note, the subsidy is pocketed by U.S. refiners, not motorists, who don't see the Canadian discount when filling up at the pumps.) What if Canadian oil was getting world prices? At the current Brent-Western Canadian Select spread of roughly $50 a barrel, you're in the neighbourhood of $100-million a day. That equates to foregone revenues of more than $35-billion over the course of a year."
Vancouver gets more of its gasoline from coastal refineries down the coast. Kamloops, Prince George get their supply from Edmonton, Calgary, Saskatchewan. Twice a year the refineries retool their factories, In spring like right now they switch from producing large amounts of heating oil and Diesel to Gasoline. Then in the fall before it gets cold they do the opposite. This is a good thing!! if they did not do this the Supply and demand picture would get out of whack. However, its predictable and traders like to take advantage of this fact so they drive up the prices. There has also been a global drawn down of gasoline supplies so these things get amplified. Add that to the fact that we get taxed 50 cents a litre and we find our self in the environment we are in.
On a bit of a side note, My bosses, Boss was in a big convention with Suncor, Husky, Shell ect.. And asked them "how come Asphalt is 800 bucks a tonne when its a waste product and we used to get it for next to nothing" Their response was basically "because we set the market." This was basically after the advent of the Coker.
Also pipelines won't affect the price of gas we will see, They will only help the margins at the refiners (Edmonton, Calgary, Saskatchewan) In fact they would most likely drive up the price of Gas in thoes markets.. Gasoline is traded at a global level. We are a coastal city that means we get Global markets.
https://www.theglobeandmail.com/rep...canadas-oil-subsidy-to-the-us/article6994747/
"Do the math on some 2 million barrels a day of heavily discounted oil exports and suddenly you're talking about an enormous wealth transfer from Canadian oil producers to American refineries. (Note, the subsidy is pocketed by U.S. refiners, not motorists, who don't see the Canadian discount when filling up at the pumps.) What if Canadian oil was getting world prices? At the current Brent-Western Canadian Select spread of roughly $50 a barrel, you're in the neighbourhood of $100-million a day. That equates to foregone revenues of more than $35-billion over the course of a year."
wildmanyeah
Crew Member
Inflation and rising interest rates...And rising gasoline prices will certainly increase inflation
SpringVelocity
Crew Member
I don't know guys sounds like fluff and BS to me, and I have been in oil patch as well. Something doesn't add up.
Newf
Crew Member
I was thinking the same thing. The Greens must have found a way to control the price of gasoline. LOL This should help with their agenda.
The only problem is that they are years and years away from being anywhere near replacing oil. It won't be long and even the greens will be asking for a new refinery in BC to produce gasoline from that dirty Alberta oil. One can only dream. I'm kidding of course.
What would you do if spent tons of $$$$$$ on an expanded pipe line,
You jumped thru all the legalities, hoops, had a Federal gov and provincial Gov make recommendations and changes that you must do to get approval. Do all those things and get approval from all governments then have a new provincial gov make up a new "fake" rule and a new study that will delay you making money for a few years?
Lucky I am not KM, the Vancouver pipe line would be down for service and all gasoline redirected to another customer until Horgan is thrown out and people get tired of $3-5$ ltr. Just my thoughts. But all can believe refineries are down for whatever excuses they give.
HM
You jumped thru all the legalities, hoops, had a Federal gov and provincial Gov make recommendations and changes that you must do to get approval. Do all those things and get approval from all governments then have a new provincial gov make up a new "fake" rule and a new study that will delay you making money for a few years?
Lucky I am not KM, the Vancouver pipe line would be down for service and all gasoline redirected to another customer until Horgan is thrown out and people get tired of $3-5$ ltr. Just my thoughts. But all can believe refineries are down for whatever excuses they give.
HM
fish brain
Crew Member
A number of years ago when oil was $50 a barrel we paid 70 cents per liter. at $100 per barrel we paid I think $1.20ish in Mill Bay. Canadian crude has traded for roughly $40 per barrel this past year, https://oilprice.com/freewidgets/get_oilprices_chart/68# Yet oil prices are higher than they have ever been.
I dont know what the reason is, but not having a new pipeline is not it.
I dont know what the reason is, but not having a new pipeline is not it.
The reason is plain and simple. All the reasons given, shortages, refinery turnarounds, crude price fluctuations etc, are all smoke and mirrors. It is price fixing and collusion by the fuel retailers. It is illegal but they get away with it constantly. BTW, I used to operate a gas station with consigned fuel and I never buy fuel from the company that used to call my district mgr and complain when I didn't put it up after they did. They were always the first to go up in my area. I did fill my new to me boat in Alberta before I towed it back here though.
Sr SQ
Well-Known Member
This is 100% accurate, I too ran a station and its been going on forever!
wildmanyeah
Crew Member
What did you use for the benchmark price? WTI? WCS? Brent? Also why did you use crude for your analysis and not gasoline benchmark? What were the taxes in 2008 compared to now?
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WTI, just making a simple comparison of the crude oil price and the price at the pump in 2008 and 2018.
wildmanyeah
Crew Member
Wonder how this will cut into the guides margins and will we see them raising their fees?
ILHG
Crew Member
I would expect everyone's fees to be going up. I cant imagine anyone being surprised at a fuel surcharge.
The terrible things for folks who guide is they may loose either way. If they raise the price up it may reduce business due to affordability. Don't raise prices & definitely going to cut into profits.. Small businesses everywhere will be feeling the pinch... This is who is really hurt in all this.
I always fill up the slip tank before I cross the boarder or even get close. the extra 450 liters goes a long ways.
kingblazer84
Crew Member
im kinda glad I own a 17.5' boat with smaller power on it (85hp) and 5 hp kicker where it wont light my wallet on fire when I fill it up..
