Quote:
Originally Posted by Red
Fuel costs have been fluctuating all the time. Just few days ago gas went up by 12 cents, 3x the rate of the CT.
This has nothing to do with transparency. Airlines and others add fuel surcharges at times of extreme cost increases. 4 cents a litre increase in times where were see 10 cent fluctuations daily is nothing. It's an excuse to gauge.
Wonder if similar announcement went out when gas prices dropped to 70c some months ago....would be shocked if there was one or a discount in prices.
|
I keep typing rebuttals to this, then erasing. I think we're arguing from different points of view... myself, I look at it from a retailer's perspective. Fuel surcharges, and how price changes in fuel effect the fuel surcharge, are completely transparent to me. I know exactly what I'm paying for freight based on today's fuel price, and exactly what I'd pay based on a hypothetical fuel price I just made up. I expect that same transparency when the carbon tax comes into play, and it sounds like carriers (Rosenau Transport) are going to provide it.
As for a drop to 70c, and wondering if there's a discount in prices. Yes, there usually is. Retailers compete against each other, and so when the cost of goods (including freight) decreases, so too does the retail price, typically. Obviously there are other variables involved, but assuming that the product you are buying is one in good supply, the retail price boils down cost + margin. If cost decreases, and margin stays the same, then retail price decreases. Most people probably think the retailer just uses that opportunity to capture extra margin, but in a competitive market that just isn't true.
Quote:
Originally Posted by Red
Today gas is 95c. Next month it may be 75c + 4 for the CT. Who is better off?
|
I can't follow this logic.