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Why do gasoline prices differ across Canada?
September 24, 2017
1:02 pm
Loonie
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Bill said
Loonie, I do live near London, moved from GTA when I was 18 so I'm still back and forth regularly and can compare. London-area auto-related and other manufacturing has been on a decline for years, its economy is not doing as well as GTA, so I figure that's why gas prices are lower.  

I go back and forth quite a bit myself as I lived there for a number of years. As far back as I can remember (the '60s), London only had a handful of manufacturing plants, mostly hidden away in the east end, and mostly gone to Mexico now. Its economic strength was generally white collar - in culture, insurance, some government services, and the university. And of course there was beer! London had enough going for it that families stayed there for generations and did not necessarily move to the GTA. A good place to live, with fairly stable housing prices, good cultural outlets, trees, a little lake for your sailboat, vibrant alumni-friendly university community and all that flows from it, nice market, better restaurants than they used to have, Springbank for the kids, good hospitals, places where seniors can live affordably, etc. They've even cleaned up Lake Erie, so all they need to do is bring back the London & Port Stanley Railway for excursions, and all will be well! Them were the days... London's biggest weakness, in my view, is public transportation. I'm not sure what the job market is there now.

September 24, 2017
1:42 pm
Bill
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You're right on about London, the good jobs are now in the public sector (university, college, hospitals, teachers, police & fire, municipal and government workers, etc) because pay is same as GTA but house prices about a third (or even less) of what GTA would cost. So living here is a dream compared to GTA, it's why I moved here as a youth, and why the economy here is also stimulated more and more it seems by GTA-ers retiring here (I'm not encouraging it!). But the good paying private sector jobs have largely left (as in much of Canada's non-Greater Metropolitan areas) and as London folks and its politicians are generally Unifor and other unions-friendly business is not very interested in coming here. So gas prices are usually lower. (But the Port Stanley to St Thomas railway runs again during the summer tourist season!)

September 24, 2017
1:50 pm
AltaRed
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Loonie said
Aw, those poor capitalists and investors. Tough road, eh?
It will no doubt be a relief to all when the oil and gas industry is completely eclipsed by alternative energy sources. The tar sands and pipeline debates will disappear and everyone will be happy because it turns out nobody was making any money off it anyway! sf-surprised
As if.  

No one said the industry was not profitable on a full business cycle. They just are not making out like bandits like the 'haters of O&G' think (state oil companies aside). If it was that profitable, the energy sector of the stock market indices would be the one that lifts all boats, when in fact, it has been a laggard compared to Financials for example. Producers, refiners and retailers do not do nearly as well as the infrastructure components like pipelines and transportation. The only exposure I have to the industry is in pipelines (TRP, ENB) and one retailer (ATD.b).

Regardless, there are several hands in the till along the way and no one makes out like bandits over a complete business cycle. Oil will be around for a very long time because it has to be around for a very long time. There are no practical alternatives for many of the products oil provides. It might be down to have the size it is today.... circa 2050 and that is as it should be.

I am all for putting more tax on hydrocarbon end products if that money is directly used to subsidize electric vehicles and the infrastructure required to support them. Another 10 cents/litre at the pump is not a bad idea. Nor would be a pollution tax on hydrocarbon fuelled vehicles at time of purchase, and using that money to subsidize new electric vehicles. If we want alternative fuels, we have to be part of the solution through tax policy.

September 24, 2017
4:19 pm
Bill
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I agree, AltaRed. Except your last sentence is a bit contradictory to me, as it seems to say that we want alternative fuels as long as our friends and neighbours (i.e. someone else, via tax policy) help us pay the bulk of the higher cost. If we really wanted alternative fuels we'd buy them and the related vehicles and abandon carbon-based, end of story, no incentives or "penalties" (carbon tax) needed. But in fact we only want them if they cost us just a bit more, otherwise we're fine with carbon, thanks.

September 24, 2017
4:35 pm
Top It Up
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As the saying goes - Greens are Green, until it costs them Green.

September 24, 2017
5:17 pm
AltaRed
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Bill said
I agree, AltaRed. Except your last sentence is a bit contradictory to me, as it seems to say that we want alternative fuels as long as our friends and neighbours (i.e. someone else, via tax policy) help us pay the bulk of the higher cost. If we really wanted alternative fuels we'd buy them and the related vehicles and abandon carbon-based, end of story, no incentives or "penalties" (carbon tax) needed. But in fact we only want them if they cost us just a bit more, otherwise we're fine with carbon, thanks.  

The vast majority of society will only go Green when the hydrocarbon alternative (status quo) costs more. To get enough of society to move to alternative fuels, it will thus take tax policy to provide the 'boots' to kick people in that direction. It isn't going to happen just because of conscience. And there are vast situations in our society where alt fuels are not viable in any case (remote locations, heavy construction, petrochemicals, jet fuel, pleasure boating, ATVing and a host of others).

September 24, 2017
5:45 pm
Bill
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Exactly, AltaRed. And don't underestimate carbon energy's ability to go lower in price too, though I suppose governments can just raise taxes again.

Plus I notice the scientists and prime ministers have never really quantified for us how much the temperatures will decrease if we go off carbon, and usually people don't buy something when they don't know what they're getting in return, if anything at all. And also our leaders, in a time of global communications, are still jetting off all over the world with their families and entourages, smiling at all the photo-ops and what a great time they're all having, so their actions aren't exactly in sync with the so-called gravity of the situation. It's a disconnect - in real wartime nobody's yukking it up.

September 24, 2017
7:04 pm
AltaRed
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We're delving into 'tasmanian devil' emotion territory with mention of global warming and the hypocrisy of so many of the advocates. Time for me to shut up.

September 25, 2017
5:47 am
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For those who might be unaware of the current global use/reliance on fossil fuels, by the aviation industry, here's a link to a live flight tracking website -

https://flightaware.com/live/

September 25, 2017
4:11 pm
Loonie
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Bill, the politicians etc are not talking about the temp going down because of going off carbons because, as I understand it, they are not going to go down. The damage is done. It's only a question of how much more they are going to go UP if we don't do enough to stop the trend. Any amount of "up" is dangerous as we're already into brinksmanship.

The age of self-indulgence "just because I can" ought to be over. We should probably be rationing how much discretionary fuel use people use, but that would surely result in a howl heard round the world, so none of them have the guts to do it. Stuffing up downtown arteries with bike lanes isn't gonna do it, and doesn't take into account the needs of the elderly and disabled. The only thing I agreed with Rob Ford on was the need for more subways, not the shorter-term LRTs, but for subways you must have funding help from other levels of government, who are using it to prop up Bombardier, the slowpoke producer of subway cars and airplanes.

There are few things that irk me more than those darned Snowbirds in the air every year. Not only do they use old planes which have often had problems, putting people at risk, and not only do they engage in daredevil manoeuvres, but they use up vast amounts of fuel and pollute the air, which only detracts from our well being. We are not supposed to criticize because we are supposed to be proud - of this?? They need to find a worthwhile hobby or some good volunteer work like building houses for Habitat for Humanity or tutoring. It's things like this that make me realize none of our governments are terribly serious about fuel conservation, environmental sustainability or climate change. If they were, they would have banned this years ago.

We are long overdue for a major re-think of our way of life. It is amazing to me how little of that has really happened. If something is not contributing to meeting the standard of the Paris accord or better, then its time to consider getting rid of it. This is a much bigger issue than light bulbs and power bars. It might mean sailing rather than power boats. Take up swimming and diving in stead of water skiing. Wash your own dishes. Ban RVs. And so on. People don't like to hear these things, especially when it hits close to home. And no government has the guts to do it. We're all living in dreamland. One day, you will have no choices left if we continue on our present course. I'll probably be gone by then anyway, but it will be tough on the nieces and nephews.

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