Hailing higher prices

Like truck drivers and airline employees, taxi drivers depend on the price of fuel for their livelihood. But, as with all Canadians, they’re also being directly affected by the rising cost of the fuel that makes their jobs possible. And as fuel costs go up, so too go taxi fares.

Toronto cab drivers recently obtained permission from the city to increase their rates, and the trend extends across the country, from Calgary to Montreal.

Depending on your ability or willingness to pay the new fees, the news could mean an added consequence of rising fuel prices (as if there needed to be another), or a trip on your city’s already taxed public transit system. But taxis aren’t the only fare-based public transportation whose costs are on the rise.

Ferries are also feeling the effects of rising fuel costs, similarly hoping to raise their fees to compensate. The potential rise in price has been enough for no less an organization than BC Ferries to call for fixed links between Canada’s west coast islands, much to the chagrin of locals who enjoy their relative isolation. And on the east coast, Nova Scotia has just committed millions to offset fuel costs and maintain existing ferry routes.

What’s clear is that consumers can’t be expected to remain insulated against the costs of high fuel prices, even when they eschew their own vehicles. The only way to hit the road without concern for fuel costs remains a long, hard walk, and even that has a carbon footprint to consider.

Prowling the Pumps – June 4, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

Prices are pretty much the same as last week, only a $0.005 cent drop, meaning our hypothetical 80-litre gas tank cost 40¢ less to fill up this week. However, it’s a 21 percent increase over what we were paying last yea, $18.08 more for our 80-litre fill-up.

Least Expensive Gasoline in Canada (per litre)

After six weeks as the least expensive place in Canada to buy gasoline, Kingston is supplanted by Windsor, which hasn’t made an appearance in the low-cost five since May 6. So it’s Ontario versus Alberta and Ontario’s cheap gas wins over Alberta’s low taxes.

Most Expensive Gasoline in Canada (per litre)

No surprises here. Interesting to note that, since we started prowling the pumps seven weeks ago, the price of gasoline in Labrador City has risen seven percent, for an annualized rate of inflation of 52%. The question is, will the residents of Labrador City be paying $2.06 per litre next April?

As gasoline prices continue to rise, it would appear that consumers are tired of the high cost of fueling SUVs and huge pickup trucks – sales of these vehicles plummeted as much as 69 per cent last month as drivers move to smaller, more fuel efficient vehicles. Consequently, the Big Three North American auto makers are closing down their truck and SUV plants.

Consequently, the Canadian city hit hardest by high gasoline prices is probably Oshawa, Ontario. It’s not a member of the costly five; in fact gas prices in southern Ontario average around $1.29, which is well on the low side for the country. But with it’s truck plant closing, Oshawa will lose more than 2,500 jobs.

Prowling the Pumps – May 27, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

Prices are on the rise again, up 4.2 cents per litre from last week. So, our hypothetical 80-litre gas tank cost $3.36 more to fill up this week.

Least Expensive Gasoline in Canada (per litre)

Kingston is the least expensive place In Canada to buy gasoline for the sixth week in a row. I think it’s time somebody slapped a huge tax on Kingston gas so some other city can enjoy the cheapest gas in the country. And Winnipeg came out of nowhere to join the low-cost five for the first time since we began prowling the pumps. If it wasn’t for taxes and Kingston, Winnipeg would have bragging rights.

Most Expensive Gasoline in Canada (per litre)

Taxes and Kingston – that’s all that keeps Gander from having the least expensive gasoline in Canada. But because of those two factors, it has the fourth highest gas prices. Really, of all the members of the pricey five, only Yellowknife has expensive gas. But unlike its compatriots, it also has low taxes.

Back to our proverbial 80-litre gas tank. If you live in Labrador City, but bought your gas in Kingston, you would have saved $19.12 this week.

This week’s excuse for high crude oil prices: Trouble in Nigeria

Prowling the Pumps – May 20, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

So…my short term prediction was wrong. Prices dropped $0.004 per litre from last week. Not a huge deal. It means that if you waited until this week to fill up and you have an 80-litre gas tank, you saved a whopping 32 cents.

Least Expensive Gasoline in Canada (per litre)

For the fifth week in a row, Kingston tops our list. But…as with last week, the next four in the low-cost five are all from Alberta. It’s still a battle of high throughput versus low taxes and low taxes won out again.

Most Expensive Gasoline in Canada (per litre)

Looks like Quebec is making real inroads into the pricey five, but Labrador City and Yellowknife still maintain their stranglehold on the two most expensive cities in which to fill up. Again it’s all a matter of taxes. Without taxes, Trois-Rivières would crack the low-cost five and Labrador City would only be three-tenths of a cent out.

Back to my predictions. With crude oil trading above $130.00US per barrel, the price of gasoline has no where to go but up. A $0.004 drop is not a precursor to declining prices.

And speaking of predictions, American oil billionaire T. Boone Pickens, Jr. predicted $150 US per barrel oil before the end of the summer. Boone is noted for his accuracy in forecasting oil prices. He reportedly predicted last year that oil would reach $80.00 US per barrel before he reached 80 years of age. Well, tomorrow, May 22 is Boone’s 80th.

Prowling the Pumps – May 13, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

A modest increase over last week, but it could be the beginning of a long, slow rise!
Least Expensive Gasoline in Canada (per litre)

Kingston tops our list for the fourth week in a row, but…the next four in the low-cost five are all from Alberta – a stunning turn of events. Makes sense though. While southern Ontario may have the advantage in terms of population, Alberta has the edge when it comes to taxes – the lowest in the country.

Most Expensive Gasoline in Canada (per litre)

The pricey five welcome Montreal for the first time. Otherwise a just a bit of jockeying for position. Interesting to note that only in Yellowknife and Whitehorse are the actual gasoline prices much higher than the average. In the other three cities, actual prices are comparable to those in the low cost club, in fact Gander and Montreal are less expensive than Lethbridge, Lloydminster and Calgary. The killer is taxes that are almost 20 cents per litre higher. One more reason to join the migration to Wild Rose Country.

If it’s any consolation, the price of oil this week hit $125.80 US per barrel, an increase of 96.4 per cent over the $64.07 US per barrel price this time last year. Gasoline prices have only risen 13.5 per cent …so far.

Prowling the Pumps – May 6, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

No change from last week, but with oil prices climbing (soaring? skyrocketing?) to more than $120 per barrel, big changes in gas prices are on the horizon.

Least Expensive Gasoline in Canada (per litre)

The five cities boasting the least expensive gas in Canada are all in Ontario — seems to be THE province to live in for cheap gas! Kingston tops our list for the third week in a row, and for the first time, Edmonton is out of the running. And to make matters worse for the rest of us, prices actually declined slightly in St. Catharines, Windsor and Peterborough.

It’s all a matter of throughput efficiencies. Gas prices will be lower where the most gas is sold, and southern Ontario has a sizeable population (+5.1 million) as well as proximity to refineries. And with so much gas being sold, local price wars could also benefit the consumer.

Most Expensive Gasoline in Canada (per litre)

Once again, Yellowknife and Labrador City tied for the most expensive gas in the country, and Whitehorse claimed third spot despite prices remaining unchanged from last week in all three cities. Fort St. John and Gander are new to the pricey five.

Again, high taxes hurt Labrador City and Gander. Interesting to note Whitehorse has the lowest taxes in Canada. But small populations and isolation don’t make for cheap gas.

One analyst is predicting $200 per barrel oil within the next two years; but seeing as prices have almost doubled since this time last year, I’m thinking two years is optimistic. Time to take transit, or move to Kingston!

Prowling the Pumps – April 15, 2008

Lurking at service stations across the country to find the lowest and highest gasoline prices in Canada

Average Canadian Gasoline Price: 116.9 cents per litre

Least Expensive Gasoline in Canada (cents per litre)

Gasoline prices vary from place to place primarily because of market size, throughput efficiencies and local price competition. Being close to refineries helps keep prices low, as is the case with Edmonton (three refineries with a total throughput of 477,000 barrels per day), St. Catharines (one refinery at Nanticoke with a throughput of 120,000 barrels per day) and Sussex (near the largest refinery in Canada at Saint John with a throughput of 300,000 barrels).

Kingston, on the other hand has no refineries. It does, however, boast two universities and six prisons, so maybe the throughput efficiency is extremely high on visitor days.

Most Expensive Gasoline in Canada (cents per litre)

Obviously, Yellowknife and Gander are about as far away from refineries as you can get. But Montréal? Well, to every rule, there is an exception. In this case, a 41.6 cent cent per litre gas tax (second highest in Canada) cancelled out the low prices that should have resulted from Montreal’s close proximity to, three refineries. Labrador City is hit doubly hard with distance and the highest gasoline taxes at 42.1 cents per litre.

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