Well, I remember taking Economics in University. Gasoline, tobacco, alcohol are all what is referred to as inelastic material. Meaning what ever the price, people are still going to buy. How many people said, "That's it when cigarettes hit $5.00 a pack, I'm going to quit!" But they still smoke. How many alcoholics quit drinking when the price of a bottle or case of beer went up?
It's big business, supply and demand. The oil companies are deliberately reducing the supply to drive up prices. A barrel of oil closed yesterday at $41.38, this is a 52 week high. Two weeks ago it was sitting around $35.00. What about reserves? Funny how fuel that has been sitting in tankers and bought for half the price today is still selling for the inflated price. Look at the profits these oil companies have been pulling in! Gas company stocks have gone up 50-100% in the last 3 years. Hey I don't like the increase in price but it doesn't bother me that much that I would stop buying it.
In Canada lots of the cost is in taxes. They should at least drop the GST portion of it. My buddy owns a gas station and he makes a pathetic $0.02/litre. You have to sell lots of gas to make money on gasoline. When there is a price war, he makes even less, only 1.5 cents/litre. That is one reason I wouldn't boycott a gas station because I know what my buddy has to go through. He also has a hoist in his shop that I always use!
P.S. Zap's a closet Liberal!!
