Why is the price of gas so high here in canada I work in the oilfield of alberta and there is no shortages?

Question

Are we being taxed to death? my 6 cylinder vehicle use to cost 45 to 50 dollars to fill back when I bought it about a year and a half ago and now my latest fill up cost me 77 bucks this is an outrage isn't there any thing we can do? I'm thinking of spending the extra money to buy any kind of vehicle with a deisel just for the fuel savings

Answer 1

The reason why gas price is high is not because there is a shortage. Neither is it because of demand. The reason is the 'fear of shortage' due to the unrest in the Middle East and the news that oil supply from the current oil fields will be significantly depleted 50 years from now.

All the oil producing countries and oil companies are making record profits because of the current inflated prices and there is very incentive for them to bring the oil price down. Let's hope that the least they would do with these profits is to research on alternative energy sources and increase exploration efforts.

Answer 2

There are two things that account for the price of gasoline: the price of crude oil and taxes. The price of crude oil is up something like 60 percent this year and the global demand for crude oil is higher than ever. So although you may pump all that Canada can use in Alberta, that crude oil is sold at the going price and the owner of the mineral rights is making a bundle.

Then comes taxes, which are substantial. In comparison, refining and distribution costs are a small percentage of the overall cost.

I hate to be the bearer of bad news but the cost of petroleum products are probably going to get worse and not better.

Answer 3

It's because OPEC sets the price per barrel. The oil companies then fix the price after refining. The govrnment swoops in afterwards and taxes it with it's 6%. But as everyone has realised 6% on 50 dollars is not the same as tax on 77 dollars.

We like fools keep accepting it while taking it in the bum.

Answer 4

Demand and quantity isn't the problem: big oil companies claim it costs them more per barrel, and now costs more to refine. And the pipeline has to be cleaned--so rates will go up again.

The funny thing is, they're still posting record profits; more than any American Company in history

Answer 5

in all probability lol , it basically relies upon which reason they provide us this time for it.earlier it replaced into because of the fact the fee of oil going up.Now their asserting cost of oil, is in hassle-free terms a small result.Then it replaced into the hurricanes which i'm able to comprehend.Then it replaced into for changing the blends from iciness to summer season and the opposite for later contained in the year.And on a internet site i replaced into reading additionally they mentioned that, opec replaced into purposly reducing production by utilising like a million million barrels an afternoon.which might thenchronic up call for.(so as that they are paying fewer human beings to artwork, yet getting tripple the income back it not greater.)that does no longer, make everyone decide directly to extend call for.additionally they use the scarce tactic, the place they think of they are going to have a scarcity so as that they jack up costs greater anyhow.and each year they shop rasing it,and rasing it So from is seams like no one somewhat is known with, you will hear approximately one ingredient then each and every week later, the fee drives up and theres no explination.the united stateshas a oil reserve with thousands and thousands and if not greater crammed with oil.and that they are contantly finding new places with quite some oil,basically seams like opec basically needs to make money. the government would desire to some how, positioned a cap on the % they could make (opec,marathon,bp ect) as income,because of the fact its distinctly lots a monopoly.I dont see why giving them greater money because of the fact its fairly low, helps with this so referred to as :scarcity".some think of it has to do something with pres. Bush, yet im uncertain must be conceivable, yet im no longer likely there.yet i will say venezeula has oil yet because of the fact their president(Chavez) hates Bush,so as that they decline to do any enterprise.solid success on finding out the genuine answer, i think of it may pi** alot of human beings off, if we ever somewhat found out.base line, someones getting wealthy on the expence of others,on a neccesity and an excellent sort of which could not discover the money for it.Like i mentioned, OPEC and the greater advantageous gas station agencies are a monopoly in theirselfs.because of the fact we've not have been given the different source and that they have got us by utilising the balls, in spite of they say, is going.

Answer 6

well diesel fuel is going up just as bad

we get the oil from alberta, it gets sent to Venezula to be turned into gasoline, then sent back here for 150% more money.

We need to develop some refinery's in Canada.

How do you like working in Alberta? i'm heading out to the rigs in a few months... am i going to hate it?

I got my license a few years ago and it was 70-80 cents a litre.. now it is 122.9.. last summer it hit 1.42

Answer 7

It is supply, not demand. There's plenty of supply, but OPEC is controlling it to keep prices up. But gas prices are still way cheaper in North America than in places like Europe and Japan. Consider yourself fortunate.

Answer 8

Because the heads of the oil companies are greedy,money grubbing,(Cannot say word here!)! That's why.
Wherever there is a fortune to be made,some unscrupulous person will rob Jesus to get it!

Answer 9

The government doesn't subsidise gas in Canada.

Answer 10

The problem isn't supply, it's demand. With the opening of the Chinese market, demand has skyrocketed.