RE:RE:RE:RE:Oil price tells us …Hi CA. My daughter who lives in Northern Ontario and I also live here but invest accross Canada. She sold her large truck for a small vehicle as she could not afford to drive it to work costing $200 plus per week. Her better half has trucks for his business and the cost to operate the vehicles has risen to $1000 per week plus masssive increases in materials if one can get them.
So my last off topic rant on this subject becasue I know from the mining companies I invest in they will all see 15-25% increases in costs not just fuel but related to transportaton of goods with costs past on.. Here's a little trivia. Canada ships oil by boat from the west coast down to the Panama canal then up to the Irving refinery on the east coast. A long trip taking weeks and months becasue we have no pipeline. How stupid is that? The good news is NFLD is approving oil wells on the east coast.
Here's an article from today's news and If I were to make an assumption mining share prices will decline over the near term lucky if they hold.
That pain at the pump you are feeling is causing squeals of delight in Ottawa as taxes from record high gas prices fill the federal coffers.
Inflation, an increased carbon tax and extra GST revenue may be taking their toll on your bank account, but they’re ensuring Justin Trudeau’s Liberal government can keep up their high spending ways.
The price of gas hit record highs across Canada over the weekend and might go higher still later in the week.
The Trudeau government has been dismissive of the idea that the spike in the price of gas is anything but the result of Russia’s invasion of Ukraine. While the impact of a war and the ensuing sanctions on a major player in the oil market is helping drive up the cost of gas, we’re also doing it to ourselves.
Proof of this can be seen in comparing gas prices on both sides of the border.
While motorists in Buffalo, N.Y., are currently paying the equivalent of about $1.51 Canadian per litre, just across the border in Niagara Falls, the price sits at $2.09 per litre. In Vancouver, prices have dropped to $2.25 per litre after topping $2.30 over the weekend, but in Bellingham, Wash., the price works out to $1.68 per litre Canadian.
Calgary and Edmonton have some of the best gas prices in Canada at just under $1.75 per litre, but head south to Montana, and you’ll pay the equivalent of $1.55 a litre in Great Falls.
The main difference is tax and our low dollar.
Hiking the carbon tax in the middle of an energy and affordability crisis was madness. Trudeau, though, is more concerned about being seen to do the right thing on climate than the impact his tax has on family budgets.
When gas spiked during the 2008 financial meltdown, our dollar was on par with American greenback; now, we’re lucky to buy it for 70 cents on the dollar. Gas price analyst and former Liberal MP Dan McTeague said the Canadian dollar no longer rises when the price of oil goes up because we’ve ceased to be a place oil and gas companies want to invest, and that is hurting us.
“The devaluation of the loonie amounts to a hidden tax or loss of purchasing power equivalent to 30 cents a litre,” McTeague said Monday.
McTeague, president of Canadians for Affordable Energy, said that the cancellation of pipeline projects from Energy East to Northern Gateway — and even the delays on Trans Mountain — are costing us. He said if these projects were online already, as they should have been, Canada would be producing an extra 3 million barrels of oil a day.
“This would easily displace Russian blackmail barrels over Europe and drive oil down $40 a barrel … saving us another 40 cents a litre,” McTeague said.
Add in the extra carbon tax, it was increased on April 1, plus the extra GST revenue, and you can see why our prices are so high. GST revenues alone are filling government coffers full.
The GST is the last item charged on a litre of fuel and while for years we’ve complained about the tax on a tax — meaning charging GST on the federal excise tax — it is now charged on the excise tax and the carbon tax.
A year ago, the average price of gas in Toronto was just under $1.30 a litre. It now sits at $2.09 a litre, and the federal government takes an 5% cut on every penny of that increase.
The war in Ukraine is no doubt affecting the price of gas, but most of the pain we’re feeling is due to the bad decisions we’ve been making, including re-electing the Trudeau Liberals.