$1.30
Big hit in the wallet
Gas price could hit $1.30: Calgary analyst
By BROOKES MERRITT, SUN MEDIA
Motorists feeling pick-pocketed by gas companies who charged a record high $1.16 per litre in Edmonton yesterday had better brace themselves - pump prices could jump as high as $1.30 this summer, says a Calgary energy analyst.
"There's no conspiracy to gouge motorists. This is a simple economic result of tight inventory and increasing demand - that's why prices are spiking," said Peter Linder, vice-president of investments at Delta One Capital Inc.
"Demand is up 2% over this time last year and refining capacity is strained.
"We could top out at another 15 cents a litre this summer. I don't see this letting up any time soon."
Motorists across Canada have been complaining for years about price gouging at the pump and some politicians have recently accused gasoline companies of artificially inflating prices.
"I've read enough lately to be convinced this is gouging. It happens every summer around long weekends," said Phil Greene after paying $40 to top up his Toyota Echo at an Esso station on St. Albert Trail yesterday.
The posted price was $1.15.9 a litre.
"I already sold my truck and bought this dinky little thing. I'll bear it, I guess, but I'm not grinning."
Rachel Cox, 33, forked over about $45 to fill her Neon at the Capilano Mohawk station, where the price was also $1.15.9 a litre.
"I'm going to have to look at a bus pass," she said. "I can't afford to spend $1,000 on gas this summer."
Linder insisted people buying into the gouging theory have been misled.
"That notion has been around for 30 years and it's complete hogwash. No government study has ever proven gouging.
"American inventory is the lowest in 16 years and demand is growing.
"The idea that refineries are scaling back production - while record profits are driving them to produce as much as they possibly can - makes no economic sense."
He also called the long-weekend price-hike theory a misconception.
"Prices go up this time of year because the week leading up to (Victoria Day weekend) is when heavy driving season begins, spiking demand and reducing supply."
Regardless of the reason, the rising trend is nation-wide.
According to a weekly pump price survey by Calgary energy analysts MJ Ervin and Associates, dated yesterday, the national average was $1.13 per litre.
Labrador City posted the high of $1.27.4 per litre, followed by Vancouver at $1.27.2, Victoria at $1.25.9, and Prince George at $1.24.
According to Gasbuddy.com, Alberta's highs and lows were $0.95.9 at a Drumheller station and $1.19.9 at several pumps in Grande Prairie.
Yesterday's price eclipsed Edmonton's previous record of $1.14 per litre, set after hurricane Katrina in September 2005.
One Edmonton motorist suggested a novel solution to gas price headaches.
"I bought a motorcycle last year and I've never had to pay even $30 to fill it. I ride it all summer," said Jill Johnston, 36, before speeding away from a south-side Safeway gas bar on her Kawasaki Ninja.
It cost her just $22 to fill the bike.
I sense alot of BS in this report
Gas price could hit $1.30: Calgary analyst
By BROOKES MERRITT, SUN MEDIA
Motorists feeling pick-pocketed by gas companies who charged a record high $1.16 per litre in Edmonton yesterday had better brace themselves - pump prices could jump as high as $1.30 this summer, says a Calgary energy analyst.
"There's no conspiracy to gouge motorists. This is a simple economic result of tight inventory and increasing demand - that's why prices are spiking," said Peter Linder, vice-president of investments at Delta One Capital Inc.
"Demand is up 2% over this time last year and refining capacity is strained.
"We could top out at another 15 cents a litre this summer. I don't see this letting up any time soon."
Motorists across Canada have been complaining for years about price gouging at the pump and some politicians have recently accused gasoline companies of artificially inflating prices.
"I've read enough lately to be convinced this is gouging. It happens every summer around long weekends," said Phil Greene after paying $40 to top up his Toyota Echo at an Esso station on St. Albert Trail yesterday.
The posted price was $1.15.9 a litre.
"I already sold my truck and bought this dinky little thing. I'll bear it, I guess, but I'm not grinning."
Rachel Cox, 33, forked over about $45 to fill her Neon at the Capilano Mohawk station, where the price was also $1.15.9 a litre.
"I'm going to have to look at a bus pass," she said. "I can't afford to spend $1,000 on gas this summer."
Linder insisted people buying into the gouging theory have been misled.
"That notion has been around for 30 years and it's complete hogwash. No government study has ever proven gouging.
"American inventory is the lowest in 16 years and demand is growing.
"The idea that refineries are scaling back production - while record profits are driving them to produce as much as they possibly can - makes no economic sense."
He also called the long-weekend price-hike theory a misconception.
"Prices go up this time of year because the week leading up to (Victoria Day weekend) is when heavy driving season begins, spiking demand and reducing supply."
Regardless of the reason, the rising trend is nation-wide.
According to a weekly pump price survey by Calgary energy analysts MJ Ervin and Associates, dated yesterday, the national average was $1.13 per litre.
Labrador City posted the high of $1.27.4 per litre, followed by Vancouver at $1.27.2, Victoria at $1.25.9, and Prince George at $1.24.
According to Gasbuddy.com, Alberta's highs and lows were $0.95.9 at a Drumheller station and $1.19.9 at several pumps in Grande Prairie.
Yesterday's price eclipsed Edmonton's previous record of $1.14 per litre, set after hurricane Katrina in September 2005.
One Edmonton motorist suggested a novel solution to gas price headaches.
"I bought a motorcycle last year and I've never had to pay even $30 to fill it. I ride it all summer," said Jill Johnston, 36, before speeding away from a south-side Safeway gas bar on her Kawasaki Ninja.
It cost her just $22 to fill the bike.
I sense alot of BS in this report
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