Gas Could Cost $2.00/Litre in Canada-$5.00/Gallon U.S By This Sunday - Sitcoms Online Message Boards

Jenya · 09-23-2005, 11:42 AM

Rita Fuels Surge in Gas Prices

BY: PATRICK BRETHOUR
Globe and Mail

Friday, September 23,2005

A wave of panic buying drained gas stations across Eastern Canada yesterday as motorists scrambled to fill up their tanks, driven by the fear of another hurricane-induced price spike.

From Windsor in Southwestern Ontario to Halifax, a relic of the 1970s energy crisis suddenly reappeared: A lineup at the gas pump.

A handful of retailers fuelled the frenzy by jacking up pump prices to unprecedented levels, as high as $2.24 a litre in Stratford, Ont. But many kept prices steady, and then watched as drivers buying up comparatively cheap fuel bled their tanks dry.

One major wholesaler, Bradshaw Fuels, said 30 of the 120 retail sites it supplies in Southwestern Ontario ran out of gas by yesterday afternoon. The remaining 90 are in danger of doing so today, the company said.

“There's consumers going crazy, lined up down the street,” said one official with the firm, adding that she believes the broadcast media created the panic by telling drivers to fill up now to avoid a spike in prices that could come if hurricane Rita wreaks further havoc with the oil industry in the southern United States.

Three weeks ago, hurricane Katrina did just that, wrecking oil platforms in the Gulf of Mexico and, even more importantly, devastating refineries along the coastline.

Wholesale commodity prices soared that day, and pump prices soon followed, with the average cost in Canada jumping to $1.26 a litre that week, and some cities seeing gasoline selling for more than $1.49 a litre.

Prices posted yesterday easily eclipsed those records. Two stations in Stratford posted a price of $2.24 a litre.

In suburban Montreal, drivers were paying as much as $1.95.

In the Halifax area, long lineups formed at several gas stations as rumours of $2-per-litre gasoline swept the city.

“It's crazy. It's just a lot of fear, panic and rumours going on,” said Steve Ecclestone, general manager of Ultramar, adding that his Montreal-based company is monitoring the Maritime market closely and wasn't planning any immediate increases.

Unlike the price spike of early September, however, yesterday's run-ups at the pump were not widespread, and not linked to any increase in wholesale prices.

Dane Baily, vice-president of the Canadian Petroleum Products Institute, said the arrival of $2 a litre gasoline was “rather inexplicable pricing” that was not matched by a rise in wholesale costs.

However limited, the sudden surge in prices occurred at an awkward moment for oil companies.

The spike came just as a parliamentary committee held a one-day hearing on the industry.

“Some of the MPs' BlackBerrys were buzzing and they were posing questions about it,” Mr. Baily said, adding that he believes independent retailers, not large integrated oil companies, posted the large price increases.

(Some stations that use the brand names of major companies are owned and operated by individuals.)

Oil companies and industry associations told MPs that pump prices are a function of supply and demand and that the oil industry is very competitive.

Brian Maynard, a vice-president of the Canadian Association of Petroleum Producers, said Canada produces only about 3 per cent of the global oil supply, so little —short of tax cuts — can be done domestically to affect pump prices. “Everyone needs to bring on more supply.”

Mr. Maynard said it's likely that Canadians will be paying even higher pump prices in the coming months as developing countries increase global demand.

Meanwhile, Ontario Premier Dalton McGuinty called on the federal Competition Bureau to launch a new probe on why prices jumped so quickly, and why they rise more quickly than they fall.

“I think there's something fundamentally wrong there, and we deserve to have some answers,” Mr. McGuinty said yesterday in Kitchener, Ont., where he is attending a Liberal Party caucus retreat.

The Competition Bureau has reviewed the industry five times in the past 15 years and found no evidence of price collusion.

While energy prices were bringing more pain in the East, there was more gain in Alberta, where Premier Ralph Klein said that the province's budget surplus could head as high as $8.8-billion in this fiscal year, more than three times the official estimate in late August.

That could leave up to $6-billion in what the government calls its “unbudgeted surplus” to split between spending on infrastructure, savings and a $400 payout to Albertans — with those cheques hitting mailboxes around Christmastime.

Mr. Klein said yesterday that there is a better-than-even chance of similar payouts in coming years if commodity prices remain high. And he hinted in a speech to the Global Business Forum in Banff, Alta., that his government could cut taxes, with a review kicking off next month.

The Alberta Premier said he will be heading east in November, speaking in Ontario and perhaps Quebec and Atlantic Canada, in part to explain to the rest of the country that it should not attempt to confiscate the province's energy bonanza.

But worry over high energy prices is growing in Ontario. Mr. McGuinty warned that the pain consumers are feeling at the pump threatens to hurt the province's overall economy, and result in higher prices for other products and services as companies pass on their rising costs to consumers, he said. “It's going to have a far-reaching impact.”

With reports from Katherine Harding in Edmonton, Karen Howlett in Kitchener, Ont., Oliver Moore in Toronto, Simon Tuck in Ottawa and Canadian Press

MsOrange · 09-23-2005, 12:25 PM

i've learned not to worry about gas prices any more.... i need gas regardless of how much it cost, so there is no use worrying myself about it.

Dr. Jazz · 09-23-2005, 01:41 PM

It's already gone up from $2.79 this morning to $4.80 during my lunch hour

Now that's crazy! If that's not price gouging, I don't know what is!

Kay Scarpetta · 09-23-2005, 01:49 PM

I put gas in the car last night for $2.76 at HESS... and now look at the prices. Outrageous.

*MIBabe03* · 09-23-2005, 02:12 PM

Yesterday afternoon, all of the pumps were completly filled with people. There were 2 cars ahead of me, and 2 behind me. I paid $2.65 for it yesterday. I drove by this morning and the price had stayed the same. By the time my 10:30 a.m. class got out and I passed it on the way home, it was $2.79. I agree with Ms. Orange though, I need gas for my car. I'm not going to worry about it.

EmoJoe · 09-23-2005, 03:59 PM

It's only about $2.95 here now but it's expected to rise up to $5 by the end of the weekend. Wow.

dawsongirl · 09-23-2005, 05:41 PM

It has consistantly gone up 10 cents a day for the last 3 days.

Fleet · 09-23-2005, 05:49 PM

I don't think it will go to $5.00/gallon. More like $3.25-$3.50.

80sTrivia · 09-23-2005, 05:58 PM

Yikes! I'm glad I filled up my tank last night. Now, I won't be driving anywhere this weekend, from the looks of things...

Living In a '70's Dream · 09-23-2005, 06:10 PM

Quote:

Originally Posted by Fleet

I don't think it will go to $5.00/gallon. More like $3.25-$3.50.

It is already at that price it some areas of California..I should know, I live in one of those AREAS

Fleet · 09-23-2005, 06:14 PM

Quote:

Originally Posted by Living In a '70's Dream

It is already at that price it some areas of California..I should know, I live in one of those AREAS

It's $2.89 at a local Mobil station.
Check out radio station KFWB (980 AM). About every hour, they report stations with the lowest prices. They did that this morning; some were $2.65-$2.75.

Living In a '70's Dream · 09-23-2005, 06:16 PM

Quote:

Originally Posted by Fleet

It's $2.89 at a local Mobil station.

Wow, and you live in the valley?...hmmm, thinking how far way is that from my house?

Living In a '70's Dream · 09-23-2005, 06:17 PM

Quote:

Originally Posted by Fleet

It's $2.89 at a local Mobil station.
Check out radio station KFWB (980 AM). About every hour, they report stations with the lowest prices. They did that this morning; some were $2.65-$2.75.

I will do that..and thanks so much for the info..

James"Thunder"Early · 09-23-2005, 06:28 PM

2.87 is the cheapest where I'm at

Fleet · 09-23-2005, 06:41 PM

Quote:

Originally Posted by Living In a '70's Dream

Wow, and you live in the valley?...hmmm, thinking how far way is that from my house?

About 8 miles, I would say.
Hey, check out this map of the valley from 1938. Tarzana, which was founded around 1920, is just to the left of the box which is the former Encino Ranch.

09-23-2005, 11:42 AM	#1
Jenya Supervisor Forum 3000 Club Member Join Date: Apr 20, 2003 Location: Canmore, Alberta Posts: 3,359	Gas Could Cost $2.00/Litre in Canada-$5.00/Gallon U.S By This Sunday Rita Fuels Surge in Gas Prices BY: PATRICK BRETHOUR Globe and Mail Friday, September 23,2005 A wave of panic buying drained gas stations across Eastern Canada yesterday as motorists scrambled to fill up their tanks, driven by the fear of another hurricane-induced price spike. From Windsor in Southwestern Ontario to Halifax, a relic of the 1970s energy crisis suddenly reappeared: A lineup at the gas pump. A handful of retailers fuelled the frenzy by jacking up pump prices to unprecedented levels, as high as $2.24 a litre in Stratford, Ont. But many kept prices steady, and then watched as drivers buying up comparatively cheap fuel bled their tanks dry. One major wholesaler, Bradshaw Fuels, said 30 of the 120 retail sites it supplies in Southwestern Ontario ran out of gas by yesterday afternoon. The remaining 90 are in danger of doing so today, the company said. “There's consumers going crazy, lined up down the street,” said one official with the firm, adding that she believes the broadcast media created the panic by telling drivers to fill up now to avoid a spike in prices that could come if hurricane Rita wreaks further havoc with the oil industry in the southern United States. Three weeks ago, hurricane Katrina did just that, wrecking oil platforms in the Gulf of Mexico and, even more importantly, devastating refineries along the coastline. Wholesale commodity prices soared that day, and pump prices soon followed, with the average cost in Canada jumping to $1.26 a litre that week, and some cities seeing gasoline selling for more than $1.49 a litre. Prices posted yesterday easily eclipsed those records. Two stations in Stratford posted a price of $2.24 a litre. In suburban Montreal, drivers were paying as much as $1.95. In the Halifax area, long lineups formed at several gas stations as rumours of $2-per-litre gasoline swept the city. “It's crazy. It's just a lot of fear, panic and rumours going on,” said Steve Ecclestone, general manager of Ultramar, adding that his Montreal-based company is monitoring the Maritime market closely and wasn't planning any immediate increases. Unlike the price spike of early September, however, yesterday's run-ups at the pump were not widespread, and not linked to any increase in wholesale prices. Dane Baily, vice-president of the Canadian Petroleum Products Institute, said the arrival of $2 a litre gasoline was “rather inexplicable pricing” that was not matched by a rise in wholesale costs. However limited, the sudden surge in prices occurred at an awkward moment for oil companies. The spike came just as a parliamentary committee held a one-day hearing on the industry. “Some of the MPs' BlackBerrys were buzzing and they were posing questions about it,” Mr. Baily said, adding that he believes independent retailers, not large integrated oil companies, posted the large price increases. (Some stations that use the brand names of major companies are owned and operated by individuals.) Oil companies and industry associations told MPs that pump prices are a function of supply and demand and that the oil industry is very competitive. Brian Maynard, a vice-president of the Canadian Association of Petroleum Producers, said Canada produces only about 3 per cent of the global oil supply, so little —short of tax cuts — can be done domestically to affect pump prices. “Everyone needs to bring on more supply.” Mr. Maynard said it's likely that Canadians will be paying even higher pump prices in the coming months as developing countries increase global demand. Meanwhile, Ontario Premier Dalton McGuinty called on the federal Competition Bureau to launch a new probe on why prices jumped so quickly, and why they rise more quickly than they fall. “I think there's something fundamentally wrong there, and we deserve to have some answers,” Mr. McGuinty said yesterday in Kitchener, Ont., where he is attending a Liberal Party caucus retreat. The Competition Bureau has reviewed the industry five times in the past 15 years and found no evidence of price collusion. While energy prices were bringing more pain in the East, there was more gain in Alberta, where Premier Ralph Klein said that the province's budget surplus could head as high as $8.8-billion in this fiscal year, more than three times the official estimate in late August. That could leave up to $6-billion in what the government calls its “unbudgeted surplus” to split between spending on infrastructure, savings and a $400 payout to Albertans — with those cheques hitting mailboxes around Christmastime. Mr. Klein said yesterday that there is a better-than-even chance of similar payouts in coming years if commodity prices remain high. And he hinted in a speech to the Global Business Forum in Banff, Alta., that his government could cut taxes, with a review kicking off next month. The Alberta Premier said he will be heading east in November, speaking in Ontario and perhaps Quebec and Atlantic Canada, in part to explain to the rest of the country that it should not attempt to confiscate the province's energy bonanza. But worry over high energy prices is growing in Ontario. Mr. McGuinty warned that the pain consumers are feeling at the pump threatens to hurt the province's overall economy, and result in higher prices for other products and services as companies pass on their rising costs to consumers, he said. “It's going to have a far-reaching impact.” With reports from Katherine Harding in Edmonton, Karen Howlett in Kitchener, Ont., Oliver Moore in Toronto, Simon Tuck in Ottawa and Canadian Press

09-23-2005, 01:49 PM	#4
Kay Scarpetta Defy Gravity 8.26.05 Forum Superstar Join Date: Jul 04, 2001 Location: La Vie Boheme Posts: 28,013	I put gas in the car last night for $2.76 at HESS... and now look at the prices. Outrageous.
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09-23-2005, 02:12 PM	#5
MIBabe03 Loving Swingtown! Forum 4000 Club Member Join Date: Jul 28, 2002 Location: TX Posts: 4,646	Yesterday afternoon, all of the pumps were completly filled with people. There were 2 cars ahead of me, and 2 behind me. I paid $2.65 for it yesterday. I drove by this morning and the price had stayed the same. By the time my 10:30 a.m. class got out and I passed it on the way home, it was $2.79. I agree with Ms. Orange though, I need gas for my car. I'm not going to worry about it.
	__________________ Laura and Mario November 10, 2006

09-23-2005, 03:59 PM	#6
EmoJoe Cool cool cool Forum Addict Join Date: Apr 23, 2004 Location: New Jersey Posts: 71,478	It's only about $2.95 here now but it's expected to rise up to $5 by the end of the weekend. Wow.
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09-23-2005, 05:49 PM	#8
Fleet Mansions, limousines & H-ween Forum Star Join Date: Jan 06, 2002 Location: Northridge/Porter Ranch, California Posts: 15,625	I don't think it will go to $5.00/gallon. More like $3.25-$3.50.
	__________________ 1976 Cadillac Fleetwood Seventy-Five Limousine.

09-23-2005, 12:25 PM	#2
MsOrange Bringin' Sexy Back Forum Veteran Join Date: Dec 27, 2004 Posts: 6,133	i've learned not to worry about gas prices any more.... i need gas regardless of how much it cost, so there is no use worrying myself about it.

09-23-2005, 01:41 PM	#3
Dr. Jazz The Evil Empire. . . . Forum Star Join Date: Jun 06, 2003 Posts: 11,098	It's already gone up from $2.79 this morning to $4.80 during my lunch hour Now that's crazy! If that's not price gouging, I don't know what is!

09-23-2005, 05:41 PM	#7
dawsongirl Member Forum Icon Join Date: Jan 04, 2001 Posts: 53,140	It has consistantly gone up 10 cents a day for the last 3 days.

09-23-2005, 05:58 PM	#9
80sTrivia Member Forum Celebrity Join Date: May 23, 2002 Posts: 21,714	Yikes! I'm glad I filled up my tank last night. Now, I won't be driving anywhere this weekend, from the looks of things...
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09-23-2005, 06:28 PM	#14
James"Thunder"Early Whoever's In New England Forum Veteran Join Date: Feb 23, 2004 Location: The Apollo Posts: 7,088	2.87 is the cheapest where I'm at
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