I started driving about 13 years ago. Among wasting money on useless items, I was concerned with being able to afford insurance. A few years later, I bought an Acura Integra, and tried to pay both insurance and car payments, but ended up needing my parents' assistance. Gas back then was around the 50 cents/litre range.
Fast forward to this morning. When I woke up, regular unleaded gas was $1.20/ litre, putting the 91 octane gas that I prefer to use at just over $1.30/litre. Why are gas prices going up you ask?
The standard answer is that oil prices are going up. Yes, oil is at a record $114/barrel these days, but are gas prices a true reflection of oil prices?
Do you remember a little while back when regular gas hit over $1.30/litre? Was oil at $114/barrel then? Let me help you: No, it wasn't. So, if the two are related, one would assume when oil hits an all-time high, so would gas. But oil is at that point now and gas isn't. Gas was more expensive when oil wasn't as high.
Also, there are no gas companies that buy oil and turn it into gas the very same day you put it in your car. Oil is bought well in advance. So then why are we paying $1.20/litre when oil is at $114/barrel when the gas companies bought the oil that you are using when it was only $100/barrel? Shouldn't gas prices go up in a couple of months to reflect the high oil prices now? Gas companies won't get the expensive oil they are buying today to the pumps for a while.
Wait...does that mean gas prices will only continue to soar? I understand business and support turning a profit, but gouging people when there really isn't a valid alternative is inexcusable.
To help you find the lowest gas prices in your area, visit torontogasprices.com or gasbuddy.com
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