Saturday, April 19, 2008

More on Gas Prices

I like Win. have been looking up gas prices and taxes. We have relatives in London England and others in Louisiana and Mississippi. We hear about it from those different points of view.

 

The US average is 90 cents per litre while the California price is as high as $1.09 per litre. The costs at the pump reflect a basket of different things including whether or not the state has oil and if not its distance from a refinery and the density of the population delivered to as well as the local tax regime including Federal, State, and Municipal taxes and the refiners expectations of higher and higher profits.

 

In other words we are buying different things at the pump along with our fuel depending on where we live. In Canada you may be buying a portion of a hip replacement operation or the local tourist advertising budget or new equipment for the armed forces.

 

Gas Buddy reports Ontario taxes to be $0.14 per litre while Alberta comes in at $0.09 per litre. To that we can add 5% GST, plus 10 cents per litre Federal Excise Tax for a total of approximately $0.30 per litre of the current $1.18 pump price.

 

Nothing else gets people's dander up like high gas prices unless it's a reduction in the level of the services we demand or dividends we expect.

I notice now how I get to look back nostalgically every year at what seem like the low prices from last season.

 

I'm getting my bike out now and going for a ride.

 

Cheers, Marty

Ed B.

 

Thanks Ed B.

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