Brace Yourself: Gas Going Up Again This WeekendFriday September 12, 2008
CityNews.ca Staff
By most logical standards, it just doesn't seem to add up, although it's definitely subtracting some serious dollars from those who depend on their cars to get around. Despite the fact that the price of oil plunged to below US$100 a barrel on world markets Friday, gas prices in Toronto went the other way, skyrocketing to a staggering $1.36.6 for a litre of regular.
So how can both realities exist at the same time? That's what angry car owners in the city want to know, as they process this latest hit to their wallets.
Thousands of drivers woke up to the stunning sight of gas station marquees showing the new price in the morning. It was a 12.9 cent increase from the day before and the highest price seen in the GTA since July 4th, when we briefly hit the $1.37 mark.
And there are fears that it could go even higher.
Gas watchdog Dan McTeague now predicts prices will rise again on the weekend, this time up another 1.6 cents. That will put a litre of regular at $1.38.2 - an all time record high.
Those who got an advance warning through CityNews and McTeague Thursday night scurried to the pumps across the city, which quickly become clogged with drivers trying to beat the almost unprecedented pump jump. Tempers flared in some places while others had long waits, but eventually everyone got their fill.
The crowds stayed until midnight and but quickly dissipated when the numbers changed across the city. By morning, those who hadn't heard the news were experiencing real sticker shock.
"I really seriously might have to take out a mortgage or something," one woman grumps as she reluctantly squeezes in the more expensive fuel.
"It's a rip-off," complains another.
"I hate giving money away for gas," concludes a third.
In desperation, some drivers stocked up on gas before the prices spiked, prompting a warning from the fire department.
"We don't want to see people hoarding gasoline and possibly taking their approved cans and going home and maybe dumping it in an unapproved can in a garage or whatnot," said Acting District Chief Kevin Shaw.
What caused the sudden increase? Experts are attributing it to the Ike Spike, as Hurricane Ike heads towards the oil rigs in the Gulf of Mexico. Most of them have been temporarily abandoned waiting out the storm, meaning no production is coming from that important region, which is responsible for a large amount of our supply in North America.
Some drivers were balking at that as a lame excuse.
"Maybe if the storm would hit, if it was like Katrina and then the gas prices went up afterwards, but it hasn't even done anything yet," one angry motorist vented.
McTeague agrees, noting that gas in the U.S. is selling for about $1 a litre.
He calls it blatant greed on behalf of the oil companies, which he claims are deliberately squeezing the supply to drive up prices. "The argument of supply and demand and market forces are thrown out the window here. It appears that someone's able to exercise tremendous market power and take advantage of the public."
But not all experts think that's true. The president of the
Canadian Petroleum Products Institute insists the increase is due solely to market forces -not price fixing. "There's no unique Canadian market for fuels, we operate in the context of a North American market for fuel," notes Peter Boag. "So things that happen anywhere in North America have an impact on fuel prices in Canada."
Whatever the truth, Toronto is getting hosed along with some other regions of Canada. Vancouver is shelling out nearly $1.40 cents a litre, the price sits at between $1.10 and $1.41 in oil rich Calgary, Halifax drivers are forking over $1.33 per squirt and in Montreal, gas costs about $1.38. Newfoundland is among the hardest hit. Motorists there are on the hook for $1.42 everytime they fill up.
All of which has McTeague fuming. "This is a sick industry, dysfunctional," he growls. "No such thing as supply and demand. They supply excuses and demand extortion-like prices."
One man thought he was getting the bargain of a lifetime as he pulled into a station at Wellington and Spadina in the morning. The sign read $1.23 per litre and he quickly moved to the pump to top up.
But then he saw a handwritten note explaining that the marquee sign was broken - and the real price was in effect.
"I thought maybe they overslept," he laughs. "And I was hoping, eh?"
But if you're hoping to see a price decrease anytime soon, you may have a bit of a wait. A lot depends on Mother Nature's wrath down south - and how much you can afford to keep paying up north.
