Wednesday, May 02, 2007

Gasoline Price

So, gasoline price becomes a hot topic again this week, as some drivers in the country are paying as high as $1.25 per litre for self-serve regular unleaded gasoline.

My prediction is gasoline price can go as high as $1.50 per litre this summer, given the inventory south of the border is much lower than usual (and has been in decline for the past 11 weeks). Some analysts in the States are saying that gasoline price will go as high as $4 per gallon this summer.

I don't necessary see this as a bad thing. After all, I am a supporter of the Pigouvian tax. Rising gas prices will have a similar effect - to curb consumption of gasoline.

4 Comments:

Blogger Grant said...

I agree.
Consumers have an "everything, all the time,cheap" attitude but don't really appreciate the energy involved in keeping their lifestyles unchanged.

In a world where there are currently 4 barrels of oil used for every one found and a Billion barrels used every 10 days the writing is clearly on the wall. Use less and yes, it will cost more.

5/04/2007 12:55 p.m.  
Blogger X said...

Something I don't get is those people who called themselves "environmentalists".

They want lower consumption of fossil fuel, but they bitch about high gasoline prices.

5/05/2007 7:35 p.m.  
Blogger Grant said...

Actually, the increase in gas prices could be good for a few reasons. People will be forced to think about their movements before driving and judging by the amount of obese peoples I see in Saskatoon we might see a bit of collective slimming because doing the drive thru won't be so easy anymore.
Maybe they could walk to the store for smokes.

5/09/2007 10:01 a.m.  
Blogger X said...

.....and people like report like this: http://policyalternatives.ca/Reports/2007/05/ReportsStudies1624/index.cfm?pa=A2286B2A

5/10/2007 8:37 p.m.  

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