Gas + - 67.9 per Liter

[Clampet]

I don't understand how come the cost of gas has plummeted so low!

Has the demand really subsided?

Edited December 7, 2008 by Clamp-it

[fishindevil]

Thatas great its about time,last night on the 115 hwy. around the orono area it was 69.9cents per litre !!!! i hope it stays like that for a while...cheers

[Rich Clemens]

Sweet. That's about half of what I was paying up there this past September. Hope she stays reasonable until next summer, but I doubt it.

[Greencoachdog]

Yeah, I filled the truck up for $40 last week @ $1.71 per gallon/.45 a liter.

 

It seems that OPEC has some inner squabblings going on and they're reducing the price as a way to get even.

[ccmtcanada]

I don't understand how come the cost of gas has plummeted so low!

Has the demand really subsided?

 

Demand is down, but that's not the only factor.

 

Speculators drove the price of a barrel of oil up for the past year or so, causing the raw materials for making gas more expensive. A barrel of crude has dropped from around $148 down to $41, so it doesn't cost as much to buy that raw material.

 

Since the world is in recession, the outlook for the demand isn't looking great, so speculators are shying away from investing, thus the price is low.

 

The retail price is reflective of those two reasons, but also the value of the Canadian dollar in relation to the US dollar. You may think that since gas was at it's peak over $1.30 per liter...the cost of oil has dropped around 70%, that gas should also drop by 70% as well. Since the price of oil is purchased on the world market in US$, when our dollar drops it still 'costs' more for us. Also, there are fixed costs in production that don't move no matter what the price of oil is at, or what the value of our dollar is.

 

I'm not an expert...this is just how I believe it works...if anyone else can clarify anything I've written, it would be appreciated.

[Whitespinnerbait]

It was 69.7 cents a liter in Ottawa last night

 

 

 

 

 

 

 

[johnnyb]

It's such fantastic news, I'm suprised we're not seeing more about it in the papers and on t.v....oh wait a sec...it's GOOD news...right

[OhioFisherman]

CCMT ya you seem to have it right, demand is way down and expected to drop more, prices could get to 1-1.25 a gallon here as predicted by the experts. OPEC is supposed to meet to lower supply, but if there is no demand prices still won`t rise much.

 

Prices should remain lower as long as the recession is continuing, maybe a rise for the summer driving season. Still not a time to buy a gas guzzler if you don`t need one, rising oil prices might be a marker the recession is ending, but I don`t look for that soon.

[Grimace]

at 44 dollars a barrel we should be paying around 42 cents a litre. We are still getting chiseled.

[Billy Bob]

Here in the Buffalo area there is a investigation going on because of price fixing among retailers. They are make more than twice the amount than everyone else makes per gallon. If weren't for one of the local TV stations getting everyone riled up I sure our crooked politicians would do anything like always. But anyways take a look at this article that is in today's Buffalo News.

 

http://www.buffalonews.com/cityregion/buff...ory/514946.html

[snoil]

at 44 dollars a barrel we should be paying around 42 cents a litre. We are still getting chiseled.

Good point.But it's better then 124.9

[BUSTER]

will it stay this low or like me and the wife have being thinking maybe time to go get a couple hundred worth for the holidays? we'll be going to sudbury from guelph and driving around alot in the silverado usually 2-3 tanks and when we get home its empty again...think this price will last till boxing day/new years?

[modny]

i just filled up the tank on my pontiac firefly convertible for 13$

 

sweet!

[walleyejigger]

the price in sudbury this morning finally hit below 80 cents, 79.9 woot woot

[BUSTER]

the price in sudbury this morning finally hit below 80 cents, 79.9 woot woot

hey walleyejigger ill be heading straight for emma lk behind northland when i get there. ice yet??

Edited December 6, 2008 by BUSTER

[walleyejigger]

good luck, should be plenty of ice and a heck of a lot of snow by the holidays, unfortunately i only got 3 days off around the holidays so i probably wont be hittin ice till the new year

[Terry]

ok

but why hasn't diesel prices lowered as much

it use to be cheaper then gas, less refined but it's still up there along with furnace oil

[OhioFisherman]

Terry, don`t quote me on this but diesel is a denser fuel, I think they can get more gasoline out of a barrel of oil that diesel fuel.

 

Home heating oil is closer to diesel fuel than gasoline, one of the reasons a lot of owners-operators here used to live in the country where they used home heating oil to heat their homes.

 

Some found it`s way into the fuel tanks of the truck to lose the 40+cents a gallon highway use tax. None in home heating oil.

 

They do check, diesel has a dye in it, home heating oil doesn`t, they don`t check often though. They also like to see receipts to match amounts of fuel purchased to amount of miles driven. Anything way out of line can raise a red flag.

 

Truck scale stations along the highways do more than just weigh the trucks to ensure legal limits are observed. They are a convenient place for enforcement officers to examine loads, check logs, inspect the safety of the vehicle.

[jwl]

I was pretty impressed about a week or so ago when for $45 I topped off my boat gas,an extra gas can for the boat I bring for long days, and while I was out I topped off the car since that's what I drove to get the boat gas..I call that a pretty good day

[ccmtcanada]

will it stay this low or like me and the wife have being thinking maybe time to go get a couple hundred worth for the holidays? we'll be going to sudbury from guelph and driving around alot in the silverado usually 2-3 tanks and when we get home its empty again...think this price will last till boxing day/new years?

 

Oil is bought by speculators on the world markets. All current indications are pointing that the price for oil will remain low for a while. Until the world economy is out of recession, demand will remain lower around the world. In the past, when OPEC says they are going to restrict supply, the price always is driven up by those same speculators. When the US states it's oil and gas reserves, if they go down then the price of oil also rises. For the past few months, OPEC has tried to stabilize the price of oil by announcing cutback on production, but they've had no effect...it keeps dropping. Same with US reserves...nothing seems to be stopping this slide right now.

 

Gas prices will always be variable, but I think you are safe for the holidays....it may go up a little, but nothing like what we saw this past summer.

[mbac31]

I got Gas this morning for 67.9 cents

[Clampet]

I got Gas this morning for 67.9 cents

 

That's awesome, isn't it!!?

[BUSTER]

Oil is bought by speculators on the world markets. All current indications are pointing that the price for oil will remain low for a while. Until the world economy is out of recession, demand will remain lower around the world. In the past, when OPEC says they are going to restrict supply, the price always is driven up by those same speculators. When the US states it's oil and gas reserves, if they go down then the price of oil also rises. For the past few months, OPEC has tried to stabilize the price of oil by announcing cutback on production, but they've had no effect...it keeps dropping. Same with US reserves...nothing seems to be stopping this slide right now.

 

Gas prices will always be variable, but I think you are safe for the holidays....it may go up a little, but nothing like what we saw this past summer.

thanks, if it stays till mid jan below 75cents ill be a happy camper, the cost is a huge portion of the trip's budget, i suppose ill just blow the money on boxing day sales anyway! ill have to hit romakos tackle up there

[Billy Bob]

It will remain low and might even drop a bit more until after Christmas. Then another bad report about the economy will drive the price even lower once retailers reveal how bad a Christmas year it was.

[12footspringbok]

Over 500,000 jobs lost in the states last month plus who knows how many lost here in canada means a whole lot less people driving to work....