Tag Archives: gas prices

MayDay 2011: Price & Purchasing Program

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Canadians are getting ripped off.

We are paying more at the gas pump, despite being one of the world’s largest (albeit dirtiest) sources of oil.

We consistently pay anywhere from 20-50% more on basic items like cars, books, food products and other goods.  The continuous – and lame – excuse from suppliers is that the cost of doing business in Canada is rising.  Labour, regulations and other ‘impediments’ are positioned as the point of blame for these rising prices.

However, think of these excuses in context of current events:

  • Unions are being broken.  They are not increasing in strength.
  • Although minimum wages are increasing, they are not increasing 20-30% every year.
  • When was the last time you saw an overzealous government implement a broad change in tighter regulations anywhere in Canada?

Despite the fact that our dollar continues to rise in value, we are paying more for the goods and services we rely on each day.

As a reminder, for those of you who aren’t familiar with economic terms, when your currency rises in value, imported goods should be cheaper in an inverse manner.  That is, if your currency rises 20% compared to all other currencies, the cost of goods imported into your country should drop by roughly 20% to represent this increase in buying power.

As it stands, Canadians are getting screwed over twice because they only

The progressive party (as opposed to the regressive Conservatives) that proposes an investigation into the skyrocketing prices that Canadians are paying will win this election.

Assessing the Criminality of Recent Gas Price Increases

Another hurricane is fast approaching land that’s more 2,000 km away from most Canadians.

Meanwhile, in Alberta (about 3,000 km away from most Canadians), the oil keeps flowing.  South.

And 3,000 km away in St. John’s, Danny Williams is warning all Canadians to stop voting for Conservatives.

Another day in the oil industry.  And the people of Ontario pay dearly for it.

The recent massive and uncalled for increase in the price of gas clearly establishes some issues with the pricing of gas and oil in Canada.  We are net exporters.  We are the world’s largest supplier of fuel to the United States.  We are paying international prices that are controlled by speculators as opposed to supply and demand (full story here ) and WE STILL DO NOT HAVE A PLAN TO TAKE CARE OF OURSELVES.

This is shameful.  It’s criminal.  Retired people will be freezing and cutting up their heirloom dining tables before we stop pumping to California and the rest of the ‘lower 48’.

We have to put pressure on ALL of our leaders (so far, it only seems to be Jack Layton) to step up to the plate and clarify his plan to protect Canadian consumers.

We need to point to numbers:  since the Harper Conservatives have taken control of this country with a tiny minority, the price of gas has increased nearly 100%.  Stephen Harper wants to cut $0.02 off that increase without trying to get to the bottom of why we’re being ripped off so greatly.

Imagine the economic value of the transfers involved.  Every year, the average Canadian probably spends about $2000-$4000 on gas for their cars and $1500 for natural gas for their homes.  So, let’s say the annual gas bill is about $5000 (I know I’m blurring products, but stay with me).

With roughly 10 million households in Canada, that amounts to $50 billion per year being sucked out of our economy.  With an unjustified and criminal 10% increase in gas like we saw the other day, that amounts to the complete elimination of the GST!!

We now see why renewable programs always wind up on the back-burner.

People:  a penny here or there to account for diesel prices is not going to solve our problems.  We are beholden to massive international conglomerates that could care less about the economic well-being of Canadians.  Our petro-dollar is killing all of our stable industries and giving resource producers a one-time boost in revenue.  This is not sound policy.

As Canadians, we have to understand that and support a political party that will stand up for Canadians and not just say "I’ve learned over the years not to comment on day-to-day gas price fluctuations."