Saturday, November 15, 2008

I'm so Happy I could Kiss those IRAC boys...

Well not really, maybe a little, little hug.... or as Maxwell Smart always said "would you believe" maybe... blow them a Kiss... NOT A CHANCE. Gas prices are 76.6 cents per litre in other markets which is roughly 9% lower than our prices.... bottom line is Groceries in Ontario are higher per "shopping basket" than they are here on PEI because of Competition. PEI has more grocery store square footage per capita than Ontario which results in lower grocery prices and if we had more Gas Bars delivering more fuel "with no regulations" then we would have lower gas prices.... there seems to be this crazy idea that a bulk load of fuel leaving Irving’s plant in Saint John would cost more to deliver to PEI than Ontario. Simply put it's easier and quicker to get to PEI by boat or bulk truck tanker than to the Ontario market. Once the gas is put in the bulk tanks in either Province it's a hell of a lot cheaper overhead wise for the gas companies to get it to anyplace on PEI than it is to deliver it from one side of Toronto to the other... It's great to be getting lower prices but if anything should be lowered it should be "the boom" on those high paid IRAC guys.... ship them all down to Tourism to help the Girls explain how they did so well running "Golf Links" this year...
Gasoline drops to mid-80 cents as of midnight
The Guardian
It is a number never seen this year at the gas pump, 83.5 cents per litre. It is the new lowest price of gasoline on P.E.I. as of today, following a seven-cent drop in price approved by the Island Regulatory and Appeals Commission. “Declining demand, continued unfavourable economic news and a strengthened U.S. dollar have combined to impact both crude and refined product prices,” said the order issued at midnight today. “Posted prices for gasoline, furnace oil and diesel are now all below year ago levels.” Furnace and stove oil dropped by 4.5 cents and diesel by five cents but there was no change in the price of propane. The price as of Friday stood between 92.5 and 93.6.

5 comments:

Anonymous said...

I've heard that before about PEI having lower grocery prices than Ontario, but after living here for 2 years I can assure you that is not the case. I even commented to my wife one day that "Gee, I always thought grocery prices were supposed to be higher in Ontario" and she said "Yeah me too, but that certainly isn't the case"

I wonder where you get your statistics from. Maybe it's just another piece of propaganda to make us all think we don't have it so bad on the island.

MN Investments said...

The official word is that Irving hedged the oil price and now cant refine at competitive prices. There seems to be a big disadvantage when the oil refinery is not an oil producer.

Tim Banks said...

I had always got my prices from the Loblaws people but i'm petty sure Consumer Reports and the Canadian Grocery Council track this info...

Anonymous said...

Hey Tim,

Why no comment on the PNP issue?

Anonymous said...

Gas prices today (Nov.17/08) in Halifax are 86.1 cents per litre (3cents higher than PEI).

Halifax has 10 times as many gas stations as all of PEI, yet PEI gas prices are lower.

So much for the repetitive (and tiring) argument that competion in the gas industry brings down prices.

All oil companies gauge to the same degree, just like insurance companies and banks.

But your arguments are at least getting more creative...