JOSH WINGROVE Globe and Mail Update Thu, 11 Sep 2008
Gas price watchdog and Liberal MP Dan McTeague says drivers in Toronto and Western Canada will face the largest one-day price increase he's ever seen on Friday, when pump prices could jump as much as 12.9 cents per litre.
He predicts the massive increase for the Greater Toronto Area, Ottawa, Calgary and Kelowna, B.C., while he expects prices in Montreal to go up nine cents.
Gas prices ranged between $1.21 and $1.299 per litre in Toronto Thursday night; Mr. McTeague predicts an average price of $1.366 per litre by Friday morning.
The increase outpaces rises in wholesale costs by about a four-to-one ratio, Mr. McTeague says, and is disproportionate to pump price increases in the United States, where gas is about 20 cents a litre cheaper, on average. He lashed out at a "lack of leadership" by the Harper government on the issue, saying it hasn't done enough to keep gas prices under control.
"If you can do that [increase] in one day, imagine what can happen in one year," Mr. McTeague said in an interview Thursday evening, standing at the corner of a gas station while cars honked in support. "This is a harbinger of other things that can happen down the road. We need to look for leadership down the road."
The increases come as U.S. gasoline wholesale prices jumped to unprecedented levels Thursday. Mr. McTeague says such hikes take a while to work their way to the pumps in the United States, while Canadian gas companies see to jump at the chance to boost prices.
American wholesale prices jumped Thursday as Hurricane Ike threatens the American Gulf Coast, a refining hub. But when Hurricane Gustav struck a few weeks ago, there was little increase in Canadian pump prices, Mr. McTeague noted.
"Our economy is shrinking and gas companies are ripping Canadians off," he added in a statement. "This extra 10 cents/litre does not reflect any sort of supply and demand dynamic."
James Morton
1100 - 5255 Yonge Street
Toronto, Ontario
M2N 6P4
4 comments:
I agree that something is going on...but in Vancouver, prices fluctuate between 1.34 and 1.45 during the week. Somewhere, some takes advantage of whatever crisis exists, and bumps up the price even though there is no immediate impact on reserves.
Austin
BTW...Funny that after the implementation of the BC carbon tax, gas prices actually went down.
Austin
For one thing why gas is cheaper in the U.S.in my opinion is that there is more competition. Also I think the tax on gas is a lot cheaper (maybe).
For Liberal MP Dan McTeague to accuse our PM Mr. Harper of not doing anything about gas at the pump is crazy. What does he want him to do nationalize the oil companies? Mr.Dan McTeague is just trying to put a positive spin for his party. Because he knows there could be a backlash by consumers about the liberals so called "Green Shift."
What concrete proposal Mr.Dan McTeague has to give instead of criticism. Does he think that the Liberals so called "Green Shift" would force the big oil companies to lower their prices? Please give me a break.
nearly everything is cheaper in the US. Basic supply & demand, no?
I load up my gas tank to the max when I go to Niagara Falls or Buffalo.
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