Quote:
Originally Posted by Harry Lime
This was glossed over pretty quickly in favour of a Costco 'whose hose is longer' argument, but this was a rather elegant way for a former exec to say that the price of gas is detached from outside stimuli.
In true capitalist spirit, it is a commodity that is priced to what the consumer can bear. Due to the nature of our nation, and it's dependence on gasoline, it's up to our gov't to make sure that gouging is not taking place.
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The consumer's demand for gas is pretty inelastic. I think pricing is much more strongly dictated by what the producer can bear.
I must say though, I was pretty surprised to fill up at a Petro Canada station yesterday for only $1.12. Assumed it would be much higher given the supply shortage.