$1 USD, that's like $1 CAD?

[Andrew]

Yes I remember when it was that low in mid 90s.

August 2000 was the first time it broke the 70 cent range (hey, wasn't an oil executive made president shortly after that?).

Here's data from CANSIM from Jan 1990 to May 2007. The last dot on the graph is only $1.05. We are now currently at $1.30.

[Khan]

Not as high as Europe yet.

Now it is $1.297 per litre where I am. So do some conversions. In 1990 it was less than $0.60 cents per litre.

66p a litre. Or there abouts. That still seems very cheap, what percentage tax do Canadians pay on petrol? I think here it's about 60-65% so the high price I can live with since most of the money goes back to the government but it still makes 40ish pence to the oil companies.

[Andrew]

I'm pretty sure we pay ~30% taxes. My provincial government has about 3% of total government revenue coming from gas taxes.

Yes North American prices are very cheap compared to Europe. USA people complain about their price when it is still much cheaper than in Canada, and compared to Europe it is around very cheap. It is fun to watch them flail around not being able to fill up their big SUVs. North America has spent all its money on highways for vehicles and little on public transportation.

EDIT:

Last night gas stations ran out of gas because of high demand. A neighbouring province is expecting to increase prices tonight so the gas stations over there are now lined up.

[Andrew]

Tax rebates fail to spark consumer spending

The extra money may not bring much relief. Households will spend about $90 billion more this year on gasoline if fuel prices remain at current levels, according to a forecast by economists at Credit Suisse Holdings in New York. That will consume about 80 percent of the more than $110 billion in rebate checks being sent.

B-b-but Bush said that this borrowed money from China to purchase goods from China would be good for the economy!

More wasted money the government never had in the first place.

U.S. Resurrects One-Year Bill as Borrowing Needs Jump

The U.S. Treasury said it plans to sell one-year bills for the first time in seven years as a weakening economy hurts tax receipts and forces the country deeper into debt.

...

The federal budget deficit is forecast to approach a record this year as tax revenue fails to keep pace with spending. A $168 billion fiscal stimulus plan that's aimed at boosting consumer spending and business investment has also increased borrowing needs.

Seriously what is wrong with the government!?

Wow.

[gunner154]

With people losing jobs, it's not hard to see how tax rebates aren't doing much.

[Andrew]

Sounds like gas is increasing 2 cents per litre tonight.

Good thing I purchased $192.11 today, save myself $2.92.

[Andrew]

Umm, after several days of oil prices going down, it went up $11 today to a record $138.54 (it went as high as $139.12).

Also I now notice a lot of cottage properties up for sale now. More than normal.

Good times.

[Andrew]

Gas is increasing 6.3 cents tonight going to around $1.40-$1.43 per litre which is the highest price we've ever had (beating post hurricane Katrina prices).

I fully expect a run on gas stations causing large lineups.

I myself will be purchasing $200 of gas today (or more).

[chatfsh]

In the U.S. gas prices are up to $4.00/gallon from about $3.00/gallon this time last year. 

The only advantage to me personally is that far less people are on the road these days as they opt for public transportation.  The decrease in traffic congestion shaves about 15

[Khan]

With rising petrol prices you can save a lot of money buy buying in bulk (jerry cans) each time you buy petrol.

[Andrew]

Why are you purchasing so much gas at one time?

Work related. My job requires the use of running an engine most of the day.

So far I am getting creative and charging money for work I used to do for "free" (added bonus of doing other work) instead of increasing my rates. Although next year if gas prices are this high I will be increasing the rates. I'll be absorbing some of the cost this year because my economies of scale is decent enough to be able to do so.

[chatfsh]

Can an individual consumer buy gas in bulk in the U.S.?  I thought that we could only get it from a gas station where the rate is the same whether you bought 1 gallon or 100 gallons.  Does anyone know differently?

Oh, unless your point was that it

[Gobalopper]

If you are interested here are the gas prices from Edmonton since 2005... taken from when I fill up at least.

gas.pdf

[Andrew]

Gas in 3 Atlantic provinces is regulated. The government sets the price (basically whatever the oil companies want anyway). So we get about 12 hours notice before it goes up or down. So yoday I heard it was going yp 6.3 cents, so most people would have gone out and filled up their vehicles today before the price goes up at midnight.

I bought $200 gas today. Should do me a week.

Wilson's fuel in Nova Scotia has stopped supplying fuel to rural gas stations because it is not profitable. That got the government quite upset. So it starts at the small rural gas stations not getting gas, in time will we see only certain gas stations getting gas? And increasing the price?

I'm pretty sure individual consumers can buy gas and energy in bulk. If I have a large tank I want filled, I call up the gas guys to deliver it to me. There is a minimum delivery amount, at least with heating oil which is at $500. They implemented that this past winter I think. I expect it to increase this winter, so lots of people wont be able to afford to heat their homes.

@Gob

By the looks of that graph, it looks like it is ready to go down (assuming stock analysis). Although at the last 3 peaks, oil per barrel was below $100 (I think). So this time it could be different.

[Tatar Khan]

Gas prices keep on going up due to speculative attacks on them, and just plain old crazy frenzy created by the herd effect. Once that goes over the price will start falling.

[Andrew]

Heating oil has gone up 78% year to date

$0.706 June 15, 2007

$1.255 June 15, 2008

There were lots of complaints last winter about not being able to afford to heat homes, and I expect more this winter. We had house inspectors come check out the house to find out how we can improve it so we don't lose heat. They were hardcore on recommending putting lots of insulation in everywhere. Which makes sense since in some parts of the house we have no insulation. Need to replace a door or two and lots of windows. The tape holding my cracked window together will probably break soon. Just like the previous tape did.

Today oil hit a new record. But it fell back down when the Saudis promised to increase oil production by 2% in July.

EDIT:

Fuel £1.99 a litre as tanks dry

A sign of things to come?

[Andrew]

Oil hits $140 for the first time

US Stock market closed 3% lower. Second worst decline this year.

The US Federal Reserve decided not to change the interest rates. So inflation will continue.

Just think. The Dow Jones was at:

January 14, 2000 11722.98

June 26, 2008  11453.42

Nominal and Real, the Dow is worse than it was 8 years ago.

[nemafakei]

"Fuel

[Khan]

I think it is important to note that fuel was deliberately put at prohibitive levels rather than merely raising prices to maximise profits. Also all who buy fuel at the massively inflated prices are due discounts on their next MOTs.

[Andrew]

I presume MOT = mode of transportation?

Exactly why if I buy expensive gas now, am I due for a discount the next time I purchase a car?

The Canadian federal government is eliminating the tax credit for buying hybrids at the end of this year (was around $2000). Probably because hybrids are now very easy to sell. I read some articles that car dealers could not keep them on the lot and had waiting lists.

[nemafakei]

"I presume MOT = mode of transportation?"

No, though I suspect Khan means to say road tax, which is graded somewhat for fuel efficiency.

[Khan]

I'm sure I read in the Times that a discount was given on the MOT, though I may be wrong. At least a rebate is given for those who needed to buy the fuel

[Andrew]

Election could delay Fed rate rise until December

I think they are going to write new books about how stupid monetary policy in the USA is (or maybe how great it is for certain people?).

With the largest money supply increase in the past 50 years occurring along with other inflationary factors (dollar exchange, energy) there has to be massive inflation. Put that together with the fact that they stopped publishing M3 supply, shutdown a website for publishing economic data (budget constraints which a day in Iraq could pay for), it's almost as if they are intentionally doing this for some reason. Maybe a large shift in assets to the more wealthy? A bigger divide between low/middle/high classes?

Amiercan Axle has $37 million profit in 2007, rewards CEO with $8.5 million

So giving 23% of company profits to a single person is good for the company?

Although according to the article it's workers were making $73.48 per hour for working in a factory. After a new contract they cut the wages down to $30-40 per hour and cut workforce by 1/2. So maybe he deserved it. More proof that unions are killing the American auto industry? Although it is also because the companies were all building SUV and big trucks which are not fuel efficient. Hopefully North America ends up like Europe with vehicles that are actually fuel efficient. "Soccer" moms love their SUV, minivans and big trucks to go pick up a couple groceries. Or drop the kid off somewhere.

About the MOT, in Canada most provinces have to get their vehicles inspected to show they are safe to drive on the road. Has to be done every year. We get a sticker on our license plate.

[Andrew]

Hah, oil is surging through record prices over the past couple days. Now at almost $144. Stock markets went down a lot as well.

Don't worry it is all speculation and we will see $50 oil soon. ;)

[Kokiri-Mentat]

As much as I hate paying high gas prices, at least the US is being forced to realize that an oil dependent economy will soon be a thing of the past.  People are starting to realize "Oh, geez maybe I shouldn't be driving vehicles that get 15 miles to the gallon" In 100 years, fossil-fuel economies will hopefully be extinct, and if they aren't I don't predict them doing too well over all.