Regulation of gas prices.

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Punisher-One
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Regulation of gas prices.

Postby Punisher-One » Sat Apr 16, 2011 4:14 pm

I believe that the time has come for the government to step in and regulate gas prices.

Last year Exxon made a profit of $7.56 billion. A profit. After all it's expenses were paid.
Canada consumed 2,373,333,333L (2.37 billion liters) of fuel last year.
Therefore, if my math is correct, Exxon made (remember after ALL it's expenses were paid) a profit of $0.31/L off of every liter of fuel sold in Canada last year.

If the government regulated the price of gas to half of was it is currently (so from $1.31/L to $0.65/L) it would cut Exxon's profits in half. So instead of making $7.56 billion off of us next year they will only (yes only...the poor bastards) make $3.25 billion.

I can live with that.

Government regulation of gas prices....discuss.

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Re: Regulation of gas prices.

Postby gotchya » Sat Apr 16, 2011 4:22 pm

This is certainly a departure from conservative values, as it has always been believed that free enterprise is good and will drive down the cost.

What I think government should do, and some may disagree is begin investing in research to alternatives.Provide funding for universities to develop engines and alternative fuels. Thereby you'd be accompolising two goals, firstly, you have a solution to which no patent is owned or you'd own part of it ($$$), and secondly you'd provide funding to universities and investing in education for tomorrow. Just my thoughts.

Being able to wean people of gasoline and make a more sustainable future. I know I'm sounding like a tree hugger, but I don't regulation will ever work effectively, because those companies will find ways around the regulations.

Give people an alterative and perhaps the companies won't drive the cost of gasoline up (i.e. price fixing) and "concern for demand".

From the Ministry of Energy (Ontario)
Are gasoline prices regulated in other Canadian provinces?

Under the Canadian constitution, provinces have jurisdiction to regulate prices if they choose. Currently, gasoline prices are regulated in Newfoundland, Prince Edward Island and, to a lesser extent, Quebec. Effective July 1, 2006, gasoline prices have been regulated in Nova Scotia and New Brunswick, primarily for the purpose of providing price stability

The Ontario government believes attempting to control the price of fuel by legislation could put upward pressure on prices, which is bad for consumers. Imposing a price freeze, as the government did in 1975, could make the situation worse by draining Ontario of gasoline as U.S. marketers come and buy our lower-priced fuel. Under the North American Free Trade Agreement (NAFTA), Ontario would not be able to restrict exports of gasoline to the U.S. to protect domestic supplies.


A report (although who's paying for the research may changethe results/outcome) on Market Regulation
http://www.aims.ca/site/media/aims/WhatsMissing.pdf

Or you could do what I did and bought stock in the energy companies... :twisted:
Last edited by gotchya on Sat Apr 16, 2011 4:39 pm, edited 1 time in total.
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Re: Regulation of gas prices.

Postby meathead1 » Sat Apr 16, 2011 4:35 pm

what I don't get is how gas is purchased by the gas station at XX dollars. Yet, when that fuel reserve is half gone, they raise the price of gas. How does that work?? The gas has already been purchased by the gas station. Regardless of whether the price of gas goes up AFTER the gas stationpurchases it, why does the price of the current stock of gas go up for the consumer? It's price gouging at its best.
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Re: Regulation of gas prices.

Postby gotchya » Sat Apr 16, 2011 4:45 pm

meathead1 wrote:what I don't get is how gas is purchased by the gas station at XX dollars. Yet, when that fuel reserve is half gone, they raise the price of gas. How does that work?? The gas has already been purchased by the gas station. Regardless of whether the price of gas goes up AFTER the gas stationpurchases it, why does the price of the current stock of gas go up for the consumer? It's price gouging at its best.

I asked the same thing, the "argument" is that it has to do with overall supply. Yes the gas may be already refined and paid for, but the demand has remained constant and the "supply" has dropped.

If its any consolation, we're getting screwed less than our European friends, but more than our American neighbours.
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Re: Regulation of gas prices.

Postby Tango5 » Sat Apr 16, 2011 4:57 pm

Yes, but our Europen friends use vehicles that burn half of the fuel.
Nearly all models of cars there come with diesel motors as option, also a lot of people drive cars powered by LPG.

What's up with automotive industry here? :roll:
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Re: Regulation of gas prices.

Postby Bitterman » Sat Apr 16, 2011 5:14 pm

Force Recon wrote:Government regulation of gas prices....discuss.



Yay... More Gov't invovment in business... What are you some kind of Communist?... Take it a another step and forcibly nationalise the oil co's.

Sure... Oil Co's make a lot of money, but it's not all from gasoline... Hell, the gasoline we pour into our cars is a by-product.
I don't think people realize how much "stuff" is made from oil... 'Not just fuel and lube

Yeah I gripe about the cost of fuel, but really... I choose to drive a V8.
Noone's forcing me to pay $150 to fill my tank.
If we all stopped buying the stuff for a couple weeks you'd see the price fall... Unfortunately we're so used to driving that we can't or don't want to go without.
The price of gas isn't high enough yet 'cause really... I don't see fewer cars on the road.
Last edited by Bitterman on Sat Apr 16, 2011 5:23 pm, edited 1 time in total.
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Re: Regulation of gas prices.

Postby El Conejo » Sat Apr 16, 2011 5:16 pm

Force Recon wrote:Government regulation of gas prices....discuss.


Aren't you the one who is always going on about this country's dire need for a Conservative majority government?

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Re: Regulation of gas prices.

Postby Bitterman » Sat Apr 16, 2011 5:17 pm

Podhalan wrote:What's up with automotive industry here? :roll:



The internal cumbustion engine is still the cheapest mode of power...
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Re: Regulation of gas prices.

Postby Bubbles1993 » Sat Apr 16, 2011 5:59 pm

Podhalan wrote:Yes, but our Europen friends use vehicles that burn half of the fuel.
Nearly all models of cars there come with diesel motors as option, also a lot of people drive cars powered by LPG.

What's up with automotive industry here? :roll:


I think a lot of it has to do with practicality. Canada is huge. European style small cars wouldn't be practical for those long distance trips in the middle of winter. Much of Canada is rural - no one drives a small car in rural Canada.

To a large extent the public demand drives the auto mobile designs. If smaller cars became more popular the automotive industry would build them. To be sure, the industry places a large role in the shaping of the market but I don't think they're solely to blame, if you want to call it that.

We already legislate fuel mileage, injuries caused by car accidents are treated by the public tax supported, free access medical system by nurses and docs who spent a large part of their education in a public tax supported free access education system. I'm not worried about being "socialists"...we're already there so I chuckle when people go on about conservative free market values especially in light of the recent bailouts.

I would stop all subsidies for oil companies though. A company making 7 billion doesn't need a break.
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Re: Regulation of gas prices.

Postby Snowman » Sat Apr 16, 2011 6:35 pm

Force Recon wrote:I believe that the time has come for the government to step in and regulate gas prices.

Last year Exxon made a profit of $7.56 billion. A profit. After all it's expenses were paid.
Canada consumed 2,373,333,333L (2.37 billion liters) of fuel last year.
Therefore, if my math is correct, Exxon made (remember after ALL it's expenses were paid) a profit of $0.31/L off of every liter of fuel sold in Canada last year.

If the government regulated the price of gas to half of was it is currently (so from $1.31/L to $0.65/L) it would cut Exxon's profits in half. So instead of making $7.56 billion off of us next year they will only (yes only...the poor bastards) make $3.25 billion.

I can live with that.

Government regulation of gas prices....discuss.


Buy ExxonMobil stock and a more fuel efficient vehicle, win-win. :P
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Re: Regulation of gas prices.

Postby parks department dave » Sat Apr 16, 2011 7:05 pm

I don't believe it's the oil companies that have been responsible for the 2008 or present price hikes as much as it has been speculators. You have people on wall street(banks,investment funds,ect) that have been driving up the price of crude every time someone in the world sneezes. Because of the rampant speculation, the price of oil is no longer(to the extent it once was) tied to supply and demand.

Just my two cents

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Re: Regulation of gas prices.

Postby warden602 » Sat Apr 16, 2011 7:07 pm

Force Recon wrote:I believe that the time has come for the government to step in and regulate gas prices.

Government regulation of gas prices....discuss.


Whoa, whoa, whoa... you socalist price-fixer you! Time to vote Trudeau.

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Re: Regulation of gas prices.

Postby Tango5 » Sat Apr 16, 2011 8:06 pm

Bubbles1993 wrote:
Podhalan wrote:Yes, but our Europen friends use vehicles that burn half of the fuel.
Nearly all models of cars there come with diesel motors as option, also a lot of people drive cars powered by LPG.

What's up with automotive industry here? :roll:


I think a lot of it has to do with practicality. Canada is huge. European style small cars wouldn't be practical for those long distance trips in the middle of winter. Much of Canada is rural - no one drives a small car in rural Canada.

To a large extent the public demand drives the auto mobile designs. If smaller cars became more popular the automotive industry would build them. To be sure, the industry places a large role in the shaping of the market but I don't think they're solely to blame, if you want to call it that.

We already legislate fuel mileage, injuries caused by car accidents are treated by the public tax supported, free access medical system by nurses and docs who spent a large part of their education in a public tax supported free access education system. I'm not worried about being "socialists"...we're already there so I chuckle when people go on about conservative free market values especially in light of the recent bailouts.

I would stop all subsidies for oil companies though. A company making 7 billion doesn't need a break.


Yes, of course.
What I was getting at is the fact of the prices being higher in Europe mean nothing.
People pay less there comparing to Canada taking the amount of driving we have to do here.

I would like more choice of diesel motors here.
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Re: Regulation of gas prices.

Postby Technobabbler » Sat Apr 16, 2011 8:23 pm

Podhalan wrote:I would like more choice of diesel motors here.


Still loving my VW Golf TDI.

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Re: Regulation of gas prices.

Postby Punisher-One » Sat Apr 16, 2011 8:29 pm

parks department dave wrote:I don't believe it's the oil companies that have been responsible for the 2008 or present price hikes as much as it has been speculators. You have people on wall street(banks,investment funds,ect) that have been driving up the price of crude every time someone in the world sneezes. Because of the rampant speculation, the price of oil is no longer(to the extent it once was) tied to supply and demand.

Just my two cents



Sorry I was thinking more along these lines when I posted. Doing something about the bogus speculators driving the prices artificially high so we all suffer while they roll in Maserati's.


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