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Consumers Being Gouged At The Pumps, Study Finds

Discussion in 'North America - Canada' started by Cableguy, May 10, 2007.

  1. Cableguy

    Cableguy Epic Member 5+ Years ROTM Winner 1000 Posts

    It's one study where Canadians likely won't be surprised by the results. Consumers in this country are being cheated at the gas pump, according to an investigation by the Canadian Centre for Policy Alternatives. The think tank found that motorists are being overcharged between 15 and 27 cents per litre depending on where they're filling up.
    "For example, drivers in Toronto are currently being overcharged 15 cents per litre," said CCPA research associate Hugh Mackenzie, who did the analysis. The economist figures that the gouging has taken place since Hurricane Katrina in August 2005. Since that time, prices have been consistently higher than they should be, taking costs of gas production and distribution into account.
    Drivers in Vancouver fare the worst - they're apparently paying 27 cents a litre more than they should. In Winnipeg motorists are overpaying by 21 cents a litre, in Halifax 19 cents per litre, and 18 cents per litre in Edmonton.
    "And every penny per litre generates an additional $1 million for the oil and gas industry every day from gasoline sales alone," says Mackenzie, who has developed a calculator to determine how much consumers are overpaying depending on what they pay and where.
    His report claims once the oil companies broke the psychological loonie-a-litre level, it was open season on your wallet. And they'll use whatever excuse works. When the problem is in the U.S.- like a shortage or a hurricane - that's the reason for a sudden spike. But if there's a refinery fire in Nanticoke, what's happening Stateside no longer matters, and the problem is here. The study calls both explanations "after-the-fact rationalizations for the price-gouging opportunities seized by the oil industry, or noise introduced into the discussion to distract attention from what is really going on."
    For Toronto motorists willing to wait to fill up, the Canadian Tire gas bar at Queensway and East Mall was charging about 20 cents a litre cheaper than the average price at other stations on Thursday as part of a special promotion. But that deal won't last, and drivers should be aware that they'll probably have to wait at least a half hour to fill up there. When asked, many motorists said they weren't surprised about having to pay more than they should be.
    "Nothing will change," says William McDonald. "The oil companies will decide what they're going to charge you."
    Lynd Hutchison agrees: "I'd like to see it go back to 50, 60 cents a litre. No (I don't think it'll happen), gas companies want too much of a profit."
    The study information can be found from the CCPA's website:
    http://www.policyalternatives.ca/
    To find out how much you're being cheated on gas, try the gas gauge calculator:
    http://www.gasgouge.ca/
    Link to report (pdf):
    http://policyalternatives.ca/documents/National_Office_Pubs/2007/Gas_Price_Gouge_2007.pdf
    Gas prices across Canada
    http://fuelfocus.nrcan.gc.ca/price_map_e.cfm#allprices
  2. armand71

    armand71 New Member

    I know this is an old thread but my wife and I are always noticing gas prices around here and I had to comment.

    We live in what is called the GVRD (greater Vancouver regional district)and apparently there is extra tax collected for such a great honor. We pay on average $0.10 more per liter for gas than the City of Mission which is ten minutes east of us and is not part of the GVRD. The gas stations here claim they do not set their own prices, the oil companies do and they always mention supply and demand. OK, now remember the $0.10 less per liter in Mission which would make sense due to the lack of the GVRD tax. On a recent trip into Vancouver my wife and I saw a number of different prices for gas, all the way from $1.10 per liter( which was in Maple Ridge) to $1.03 per liter in Vancouver. Both prices were from Shell stations and were approximately 45 minutes apart. So somewhere along the line either we are either getting screwed or in that 45 minutes the price went down in Maple Ridge but came back up when we got home.:lol:

    We also notice prices have gone up over night and come down during the day. Does that only happen here or does it happen in other parts of the country too? I could go on and on but my typing skills can't keep up with my rant. And one last thing to mention, on a cross boarder shopping trip I filled up in Bellingham Washington for $0.70 per liter! :gasp: Do you guys think the half hour drive is worth saving $0.40 per liter?
  3. Chevy Girl

    Chevy Girl Rockstar Platinum Contributor 100 Posts

    i go to Vancouver all the time, but I try to fill-up before I head up there, mayne Blaine or Bellingham, because your tax structure is so much different where the gas tax up there pays for stuff like roads and litter control. in wash it just back back into the general fund i think. it's less, but it does less good too. still, that's got to be tough to get around when your taxed like that.
  4. ChevyFan

    ChevyFan Administrator Staff Member 5+ Years 5000 Posts

    There was a big case of fraud a few years ago where a company was shorting people at 1/2 gallon increments.

    So if you got 1 gal, you were fine.
    But if you got 1 1/2 gal, then you got shorted.
    But if you got 2 gal, then they caught up and gave you 2.
    2 1/2 gal, and they shorted you again.

    This was because they figured the government was only checking at even-gallon increments. I think they went to jail over it.
  5. Bigbomber

    Bigbomber Rockstar 4 Years 5000 Posts

    Your not kidding we are getting ripped off, it just went up again by 6 cents per liter today
  6. hotrodking86

    hotrodking86 Rockstar 100 Posts

    Something needs to be done about the fuel prices here on this side of the Atlantic. I mean how can we lower the prices, there has to be some way. Unless it's what we all think and the government has their foot on the matter and is causing these outrageous prices. No one will ever really know. I remember when I was a kid and my sister started driving gas was 99cents a gallon, this was just 11 years ago. I mean I would cry if I could fill my tank for 26 bucks!
  7. Sierraowner5.3

    Sierraowner5.3 Rockstar 3 Years 1000 Posts

    gas compines are to big with to much power, the CEOs just want money.

    forget being honest or any of that, gouge the consumer for all we can.

    i used to work at a gas station, and the prices were set my corporate. the gas station it self changed .01 for profit on one gallon. some drives off with a 80 dollar tank full, you do the math.

    its frigging rediculous. the price of oil and the price of gas do not match up, not even close.

    Alex
  8. tbplus10

    tbplus10 Epic Member Staff Member 5+ Years 5000 Posts Platinum Contributor

    One of the biggest problems with taking on big oil is the fact that people in general want less goverment intrusion and control in their lives, if you allow the goverment to start setting limits on company profits then your allowing more goverment control, no one knows where the fine line is so companies take advantage of this confusion and anti goverment sentiment.
    Look at banks it's the same thing there.
    I think as long as we have a free market were stuck with prices for goods being set at the higher limits of where companys will make the most profit before the drop off of consumers that finally have had enough and quit buying.
  9. hotrodking86

    hotrodking86 Rockstar 100 Posts

    I wish we had some leverage with the oil companies or something, I guess our only leverage would be to stop driving gasoline cars. Because we are just feeding them and feeding them.
  10. Klutch Mclovin

    Klutch Mclovin Rockstar 100 Posts

    The price of diesel compared to gas doesn't make sense. I'm pretty sure diesel is easier to produce than gas. Even if there is alternative fuel source the government is going to find their way to get their money.

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