Dan McTeague, senior petroleum analyst at GasBuddy.com, recently tweeted about a recent six-cent price jump for gasoline. According to McTeague, there are multiple factors for the price jump, including gas stations switching to a summer gasoline mix, which is more expensive to refine. Other factors for high prices include a weak Canadian dollar, Ontario’s carbon tax and a lack of competition from Canadian refineries. So that is four reasons, according to McTeague that gas prices are rising again.
As I see it, greed on behalf of the oil industry is the big reason that recently our gas went up six cents a litre, coincidentally just in time for the Easter long weekend. As a result of high gas prices, we also will see other commodities rise in price, as it will cost more to ship food to our stores.
Soon, it may be explained that gas prices are going higher because it costs more to ship the gas to stations, because gas prices have risen, and therefore the gas tankers’ expenses have gone up, thus the higher gas prices. When will all this insanity and greed end? Interesting that when gas prices peaked a few years ago, there was some public outcry and suddenly gas prices dropped a penny or two. I believe there was no reason other than public anger.
In order to fuel public anger, I have listed 21 other excuses (not reasons) that the gas companies have actually used to justify higher gas prices these past few years
- A dismal employment report sent the dollar lower and thus the gas prices are higher.
- A refinery fire in Sweden, Venezuela, Philadelphia or any other location.
- We’ve planned refinery maintenance programs.
- Tropical storms, whether in the Gulf, or otherwise, have damaged or shut down refineries, thus threatening refinery capacity.
- Oil is affected by a super hot, panic-ridden California (or Chinese) market.
- Iran parliament rejected the president’s choice of oil minister.
- In Nigeria, villagers closed down a pumping facility or if you like, in Ecuador protesters forced a halt to production (or choose many other countries).
- Events in the oil-rich Middle East conspire to keep prices high. Let me know if you understand how events “conspire” as opposed to greedy management conspires.
- The hot Chinese and/or Indian economies threaten demand.
- Rumours of terrorist threats to Saudi refineries.
- Iran’s decision to restart its nuclear program. I guess this means they would need less gas?
- Summer is the peak driving season in the U.S. and in Canada and other countries as well…what a surprise! The point being, methinks, that when a lot of gas is being used, it is fine to raise the prices.
- It is a product of trading strategies. That’s like a motherhood statement, isn’t it?
- Excessive fuel use by the US military, which uses a third of American supplies.
- Major oil reserves are becoming harder to find.
- Major oil reserves are more expensive to exploit. My guess is we are talking about the oil sands here?
- Canada, which supplies oil to the US, recently signed a deal with China.
- The threat of hurricanes.
- Drilling and operating costs have soared. No doubt because of high gas prices.
- Fear of cold weather in the winter.
- Fear that global oil reserves will be entirely depleted by 2038.
And my own little excuse is that as gas prices rise, people get fed up and look at electric or hybrid cars, meaning less gas will be used, meaning gas companies better get as much profit as possible before demand lessens.
By the way, don’t forget to change the air in your tires from winter to summer air!
You can send your own excuses to firstname.lastname@example.org.