Gas Prices

[Devils'Advocate]

Originally Posted by Thunderball

A large amount of our problem in Canada is that at least 25% of our costs are pure tax... provincial excise (9c), federal excise (10c), GST and PST (where applicable). Since the last two are a percentage, they inflate the price as it increases. The real price of refined and delivered gas with profit margin right now is about 80 cents a litre.

I read somewhere that Harper and the Conservatives have decided to BREAK their promise to cut fuel taxes. Ah, here it is:
http://www.thestar.com/Business/article/215240

But I'm sure that the folks here will be happy to explain why the Conservatives are right to break this promise, but it was wrong for the Liberals to break their promise on the GST.

[Flames in 07]

I won't, but it is a better promise to break.

Simply put the cheaper the gasoline, the greater the consumption. People have spent the last 6 months saying that Harper is a mini GWB for alot of reasons, one of them is that he hates the environment. Well if they cut that tax he promoted more use.

I'm ok with $1.25 gas, and even ok with 1.75 gas because purchase habits have to change.

BTW for those who think oil companies are ripping you off at 1.25, if you are buying it at 1.25 now, then you can only conclude that it is a fair price, both the buyer and seller are willing to transact. The only conclusion to draw from the past is that the oil companies were selling at below your threshold in the past and therefore below what the market was willing to bear.