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Old 04-30-2019, 09:13 AM   #52
Fuzz
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Quote:
Originally Posted by GGG View Post
You shouldn’t be able to be called a think tank if you can’t think.

The highest marginal cost per litre sets the gas price in a region. So if a barge costs 55 cents per litre for transportation plus refinery costs than gas through the trans mountain pipeline would get the same profit despite transportation being far less. And if you regulate price the result is a loss of the marginal supplier. So unless the barged fuel is gouging the price cap will do nothing.

Where he is correct is that trans mountain may not fix this as Crude May be more profitable to ship oil but the solution to that is more pipeline.
They could buy guaranteed pipeline space for fuel so it stays in Vancouver. But I suspect that would go against their principles.
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