Gas to hit $1.30/Litre by Spring?

[PowerPlayoffs06]

http://calsun.canoe.ca/News/Alberta/...04058-sun.html

Drivers could soon be forking out an extra $20 at the pumps, with analysts predicting gas prices could top $1.50 a litre this spring.
Gasoline prices will "very certainly" reach $1.30 by springtime and it's "very possible" drivers will be forced to cough up $1.50 a litre, Peter Linder, president of DeltaOne Energy Funds, said yesterday.

Seriously? A 50% increase over a few months? If this is the case, Calgary needs be prepared to step up public transit. I can see a whole lot of labourers not being able or willing to fork out an additional 50 cents per litre. I've been thinking about retiring my truck and looking into a Prius or Civic Hybrid. This may just expidite that decision. Are hybrids really even a viable alternative with gas prices that are seemingly spiraling out of control?

$1.50... Good god...

[SarichFan]

Just 4 years ago it was .59 cents a liter... ing insane

[Cliche]

Cost advantage of a hybrid vis-a-vis going with a regular 4 banger or a diesel (Hello VW TDI!) is actually less than what you would own for the life of the car. I think there was an article or something that calculated that it would take something like 8+ years before the fuel savings accounted for the vehicle price.

[Dion]

I'll believe it when it happens.

It seems every year the doomsayers come out and predict insane gasoline prices.

[Temporary_User]

I believe it. It seems every summer prices go up, and that's all we hear about... then come winter they go back down and all you hear about is how bloody cold it is.

[Thunderball]

I agree with Dion... I'll believe it when I see it. Last year big numbers were bandied about, like $1.50, and the "$2/L reality." It did not come to pass. The highest I remember Calgary getting was something like $1.269/L. These "experts" also predicted a $1.25 US loonie, and even said the Canadian dollar could hit $2USD before falling back to earth. Today the dollar is even par, and likely to stay between 90c and 1.05.

Its not that these guys are idiots or doomsayers... far from. But economics and commodities are so complex, multifaceted and everchanging... its impossible to predict with any veracity, 2 weeks in advance, let alone next summer. Its a lot like the weather.

[burn_this_city]

I don't really believe it. Gas prices normally go up during the spring and summer due to increased demand, and the routine shut downs of refineries across north america. That being said I don't see the price of oil going high enough to support $1.50 a liter. In the last couple of weeks we have seen the all-time high of $98 a barrel. Since then oil futures have lost over 10% of their value and sit somewhere close to $88.. Everyone is betting that OPEC will open the taps and release more oil to the market after a meeting next week. If this occurs the price will go down to the mid $70 level for the next while. This is all happening while our dollar still sits at parity and our increase buying power should help to keep the prices somewhat lower... Like thunderball said, no one can ever bet on these things even 2 weeks down the road let alone 6 months.. If we see a lot of supply distruptions like in august of 2005 ala Katrina it could easily spike to $1.50, but the chances of that happening are pretty low.

[llama64]

Originally Posted by PowerPlayoffs06

http://calsun.canoe.ca/News/Alberta/...04058-sun.html



Seriously? A 50% increase over a few months? If this is the case, Calgary needs be prepared to step up public transit. I can see a whole lot of labourers not being able or willing to fork out an additional 50 cents per litre. I've been thinking about retiring my truck and looking into a Prius or Civic Hybrid. This may just expidite that decision. Are hybrids really even a viable alternative with gas prices that are seemingly spiraling out of control?

$1.50... Good god...

While I don't necessarily like the increase in gas prices, I do acknowledge the push it will have to get most of the larger inefficient vehicles off the road.

Taxi Companies are going to go under with those prices.

[Dion]

Originally Posted by llama64

Taxi Companies are going to go under with those prices.

Taxi companies won't go under, their fares will rise to account for the increase. The person who uses a cab will be the one that suffers.

[604flames]

Originally Posted by Dion

Taxi companies won't go under, their fares will rise to account for the increase. The person who uses a cab will be the one that suffers.

Which means that cheap SOBs like me will have to leave the bars downtown earlier to catch the last SeaBus, therefore robbing the entertainment district of hard-earned booze and post-drinking pizza money! What a vicious cycle!

[llama64]

Originally Posted by Dion

Taxi companies won't go under, their fares will rise to account for the increase. The person who uses a cab will be the one that suffers.

Wasn't there just a big fight about this last spring/summer?

They need permission from the City to raise their rates and this takes forever.

I could be wrong though.

[arsenal]

Originally Posted by burn_this_city

I don't really believe it. Gas prices normally go up during the spring and summer due to increased demand, and the routine shut downs of refineries across north america. That being said I don't see the price of oil going high enough to support $1.50 a liter. In the last couple of weeks we have seen the all-time high of $98 a barrel. Since then oil futures have lost over 10% of their value and sit somewhere close to $88.. Everyone is betting that OPEC will open the taps and release more oil to the market after a meeting next week. If this occurs the price will go down to the mid $70 level for the next while. This is all happening while our dollar still sits at parity and our increase buying power should help to keep the prices somewhat lower... Like thunderball said, no one can ever bet on these things even 2 weeks down the road let alone 6 months.. If we see a lot of supply distruptions like in august of 2005 ala Katrina it could easily spike to $1.50, but the chances of that happening are pretty low.

Have the prices dropped in canada recently because of the canadian dollar is on part with the USD?
i honestly don't see this happening. Canadian oil companies are going to use this opportunity to charge more, and rake in more profits..

[Dion]

Originally Posted by llama64

Wasn't there just a big fight about this last spring/summer?

They need permission from the City to raise their rates and this takes forever.

I could be wrong though.

I believe your right in regards to needing permission.

[Dion]

Originally Posted by Cliche

Cost advantage of a hybrid vis-a-vis going with a regular 4 banger or a diesel (Hello VW TDI!) is actually less than what you would own for the life of the car. I think there was an article or something that calculated that it would take something like 8+ years before the fuel savings accounted for the vehicle price.

If one owns that hybrid for a long period of time there's also the huge cost of replacing all those batteries. IIRC it's somewhere around 8 grand - could be wrong though.

[blankall]

Originally Posted by arsenal

Have the prices dropped in canada recently because of the canadian dollar is on part with the USD?
i honestly don't see this happening. Canadian oil companies are going to use this opportunity to charge more, and rake in more profits..

Yeah I'm not sure what is going on here either. Yes oil prices are at record highs (they are measured in US dollars), but the US dollar is lot lower than it has been in a while. Why are we still paying so much at the Canadian pump?

[PowerPlayoffs06]

Originally Posted by llama64

While I don't necessarily like the increase in gas prices, I do acknowledge the push it will have to get most of the larger inefficient vehicles off the road.

Taxi Companies are going to go under with those prices.

I really want to get rid of my truck, but I just don't want to lose the utility of it. It's so nice to have for moving or picking up large purchases and for camping and what not. It's not worth it though if fueling the beast up is going to cost me half of what my mortgage is. I was hoping to wait until Hybrid cars come down in cost a little (so it doesn't take a decade to recoup costs in fuel savings) or become more widespread so I can really get some good reviews of how they run over time, how difficult or costly it is to have mechanics work on them, etc.

Taxi companies are going to bite it hard. I guess maybe it'll make it a little easier to get one at least, if less people are willing to pony up for the increased fares that will have to accompany the fuel prices.

[Bring_Back_Shantz]

Originally Posted by arsenal

Have the prices dropped in canada recently because of the canadian dollar is on part with the USD?
i honestly don't see this happening. Canadian oil companies are going to use this opportunity to charge more, and rake in more profits..

The price of gas has stayed relatively constant because the Canadian dollar has been rising steadily with the increase in oil prices.

Think about it, not to long ago oil was at $60usd/bbl, and the canadian dollar was at .70 to the us dollar.

Now we're at $100usd/bbl and the Canadian dollar is on par.

Yup, nothing like totally forgetting what the actual numbers are when you can just assume oil companies are evil.

[MoneyGuy]

Originally Posted by Temporary_User

I believe it. It seems every summer prices go up, and that's all we hear about... then come winter they go back down and all you hear about is how bloody cold it is.

I believe it too. Maybe not by spring but I'd bet that it'll be $1.30 or more by the end of 2008.

[llama64]

Originally Posted by PowerPlayoffs06

I really want to get rid of my truck, but I just don't want to lose the utility of it. It's so nice to have for moving or picking up large purchases and for camping and what not. It's not worth it though if fueling the beast up is going to cost me half of what my mortgage is. I was hoping to wait until Hybrid cars come down in cost a little (so it doesn't take a decade to recoup costs in fuel savings) or become more widespread so I can really get some good reviews of how they run over time, how difficult or costly it is to have mechanics work on them, etc.

Taxi companies are going to bite it hard. I guess maybe it'll make it a little easier to get one at least, if less people are willing to pony up for the increased fares that will have to accompany the fuel prices.

I know in Vancouver nearly all Taxi Drivers have switched to tiny compacts or hybrid vehicles. The price of gas there is routinely 20-30 cents higher then in Alberta. Perhaps they will all just replace their Crown Vics with hybrids.

Pickups have always bothered me. Too many people use them as commuter cars rather then for their utility. This means that people buy pickups for looks and style, leaving utility and purpose as secondary buying reasons. This leaves manufactures designing and marketing trucks that appeal to people who traditionally would be buying a sports car. So, rather then having pickups geared for torque and towing capacity, they are geared for acceleration and max horsepower. I don't mean to come off as condescending, but that's a lot of fuel being consumed for vanity.

That all said, the friends I have that own pickups become "Top Friends" around moving time

[jar_e]

I just skimmed through the article...but is there anything referring to Alberta's/Calgary's prices being that high? I know back home in Terrace, BC they're already paying 1.20-1.25 so 1.30 isn't a stretch.