Just filled up the car, and saved $25 compared to a July fill-up costing $62. Now if rent, milk, and many other products came down in price it would seem fair. The cost of rising fuel gets passed on to consumers. This year's rent increase was rationalized by higher oil prices, but it would be quite the surprise to see something like rent come down as oil prices fall. Makes one wonder how many companies/businesses already have gotten their stimulus packages because of price mark-ups which stayed the same despite lower transportation costs for example. The reports earlier this year that $100-a barrel oil is here to stay seemed pretty convincing at the time, and it was a nice justification for anyone to boost product prices (hello Newfoundland Power). If this consumer saved $25 on 46 litres of gas, then transport vehicles and other modes of transport that rely on the same cheaper fuel, must be saving proportionally a similar amount.
Here is a summary of Newfoundland & Labrador gas prices for the last 20 years.
Showing posts with label oil prices. Show all posts
Showing posts with label oil prices. Show all posts
Thursday, December 11, 2008
Tuesday, December 09, 2008
Huge Surplus Great News, but Includes Big Message - More Economic Diversity Needed
As was expected for this current year there is a huge surplus, $1.27 billion. That's because for most of the year, the price of oil was grossly high. While it hurt individuals, it was great for the province. Next year could be very different. The price of oil is near $40/barrel - bad for province because oil prices can ride the roller coaster in any year, and even finance minister Kennedy said that we could be looking at up to a $600 million deficit. Consumers are getting a well deserved break, and surely do not wish to again pump their cash into pumps so that this province can be enjoying huge surpluses. The province should promote more economic diversification - that's a message that's old, but still true.
Tuesday, August 19, 2008
Going with the flow of Hebron
Though the deal was done in July the official announcement comes tomorrow, and according to Williams critic Ed Hollett at Bond Papers, just in time to precede the Corporate Research Associate quarterly poll. It would probably not be the first time a government timed a big announcement to affect poll results, especially with by-elections coming up. However, evidence to suggest that government lacks openness and honesty are something the public should be aware of and concerned about, and some NL bloggers have really driven that thread.
Most people do not analyze the fine internal political machinations that take place, but rather may dismiss it. What matters to most people are the economic benefits the Hebron project possibly has for them individually in terms of jobs and income levels, and the social, health and economic well being of the province. The field will pump 200,000 barrels of oil for 25 years (there could be more oil in the field, yet unannounced). It will not be as big as Hibernia, but the $16 billion worth of benefits to Newfoundland and Labrador is not too bad at all, and it will create over 3000 jobs in the first few years of development. The federal government will get $7 billion from the project.
The $16 billion is based on oil prices of $70 per barrel. Right now the prices are from the governments' point of view, wonderfully high at $115 a barrel - down from $147 over a month ago. It could keep going down. In recent months there are reports that consumer demand has fallen considerably. Might this be a see-saw situation? Once the fuel prices goes down enough will people go back to consuming more, hence driving prices up once again?
If alternate forms of energy like wind power, and electric cars continue their slow development, it seems to this non-expert that there will be a big demand for fossil fuels for many years to come, thus keeping the price of oil high.
Electric cars are promising. The Zap is a low priced electric vehicle, at $11,000 for the three wheeled city vehicle. Unfortunately, for many users it is not practical - low mileage per charge, and a bit too slow for arterial roads. Other more powerful electric cars may have the power, but for many the price is too out of reach, and therefore, not replacing the gas fed cars to any significant degree.
For now, the oil money from current and future sources seems like a steady flow - how to use this new found wealth to get rid of the provincial debt, maintain and improve health care, and other important needs, is a bigger challenge. Perhaps more government openness could be attained if a goal-oriented, long-term debt reduction, and economic outlook plan was produced. One that showed how much the provincial debt will be reduced each year for the next year, by 5 years, 10 years - 20 years. One that showed how much of our "have" status revenue will be devoted to reducing the provincial debt over the long run.
Most people do not analyze the fine internal political machinations that take place, but rather may dismiss it. What matters to most people are the economic benefits the Hebron project possibly has for them individually in terms of jobs and income levels, and the social, health and economic well being of the province. The field will pump 200,000 barrels of oil for 25 years (there could be more oil in the field, yet unannounced). It will not be as big as Hibernia, but the $16 billion worth of benefits to Newfoundland and Labrador is not too bad at all, and it will create over 3000 jobs in the first few years of development. The federal government will get $7 billion from the project.
The $16 billion is based on oil prices of $70 per barrel. Right now the prices are from the governments' point of view, wonderfully high at $115 a barrel - down from $147 over a month ago. It could keep going down. In recent months there are reports that consumer demand has fallen considerably. Might this be a see-saw situation? Once the fuel prices goes down enough will people go back to consuming more, hence driving prices up once again?
If alternate forms of energy like wind power, and electric cars continue their slow development, it seems to this non-expert that there will be a big demand for fossil fuels for many years to come, thus keeping the price of oil high.
Electric cars are promising. The Zap is a low priced electric vehicle, at $11,000 for the three wheeled city vehicle. Unfortunately, for many users it is not practical - low mileage per charge, and a bit too slow for arterial roads. Other more powerful electric cars may have the power, but for many the price is too out of reach, and therefore, not replacing the gas fed cars to any significant degree.
For now, the oil money from current and future sources seems like a steady flow - how to use this new found wealth to get rid of the provincial debt, maintain and improve health care, and other important needs, is a bigger challenge. Perhaps more government openness could be attained if a goal-oriented, long-term debt reduction, and economic outlook plan was produced. One that showed how much the provincial debt will be reduced each year for the next year, by 5 years, 10 years - 20 years. One that showed how much of our "have" status revenue will be devoted to reducing the provincial debt over the long run.
Friday, June 13, 2008
No Surprise at Ferry Price Hikes
Marine Atlantic burns 213,00 litres of fuel a day, so the surcharge increase is not alarming. The daily increase at the gas pumps is - and that is for virtually everyone, a daily, monthly and yearly expense that just keeps growing like a cancer. Personally I have never taken a ferry, but if I were to take a vacation, to say, PEI, an extra $40 surcharge is no big deal. If you are traveling by ferry often, then yes it can have a substantial impact.
What conflicting times we live in. There are many in society who don't even think about taking a ferry anyway because heating their homes are making them poorer, and big oil richer. The gas and oil increases will take extra $100s, and $1000 of dollars directly out of peoples' pockets this year.
It's a free-for-all for fuel companies. Until society significantly lowers its demand for fossil fuels, the sky's the limit for big oil. There are a few hybrid cars out there at still ridiculous prices but the development of other alternative forms of auto energy appears to be stuck in neutral.
p.s., yesterday some Quebec gas companies were charged with price fixing
What conflicting times we live in. There are many in society who don't even think about taking a ferry anyway because heating their homes are making them poorer, and big oil richer. The gas and oil increases will take extra $100s, and $1000 of dollars directly out of peoples' pockets this year.
It's a free-for-all for fuel companies. Until society significantly lowers its demand for fossil fuels, the sky's the limit for big oil. There are a few hybrid cars out there at still ridiculous prices but the development of other alternative forms of auto energy appears to be stuck in neutral.
p.s., yesterday some Quebec gas companies were charged with price fixing
Monday, May 05, 2008
Oil Profits Cold Comfort to Have Not Individuals
Big oil offers it's thanks to you the consumers for making them laugh in hysterics as they limo ride all the way to the bank. Yes, we love their product and we are making a few people happy. We can take some comfort in knowing that Newfoundland and Labrador is at least making barrels of extra revenue, and on the way to being a "have" province. It's too bad though, that this is cold comfort, literally, to those on low incomes, people with disabilities, and fixed incomes.
A recent story which got airplay a local tv news show, described one woman's struggle to keep warm, keep fed and keep healthy. The news of prosperity translates into more poverty for people like Wanda White.
Ms White receives $320 every two weeks. Some people fill their cars or trucks with that much gas each month. She has to use it for heat, food, electricity, phone, etc. The cost of home heating fuel since last September has risen by about .40 cents a litre. That's an increase of around $320 per typical oil tank fill up. There are many others with health struggles like her who are negatively affected by massive increases in heating expenses. Her spastic paralegia requires the use of a cane and her speech is slow. Yet, she is ambitious - doing an online course, and wanting to open a tea house in the future.
There are indeed pockets of third world living in our rich G7 country.
This is not much help, but one idea to trim home heating costs, or insurance, or anything for that matter, is to phone around and compare prices. For furnace oil, there is a range of around .06 cents a litre.
As of today, May 5th, here are local St. John's home heating oil prices:
(prices are for 1 litre of oil)
Five years ago you could buy furnace oil for about .43 cents a litre, give or take a few cents difference between dealers. In general, inflation may seem low, but this one essential product is hurting people badly. They need income increases too, to keep pace with vital living expenses.
A recent story which got airplay a local tv news show, described one woman's struggle to keep warm, keep fed and keep healthy. The news of prosperity translates into more poverty for people like Wanda White.
Ms White receives $320 every two weeks. Some people fill their cars or trucks with that much gas each month. She has to use it for heat, food, electricity, phone, etc. The cost of home heating fuel since last September has risen by about .40 cents a litre. That's an increase of around $320 per typical oil tank fill up. There are many others with health struggles like her who are negatively affected by massive increases in heating expenses. Her spastic paralegia requires the use of a cane and her speech is slow. Yet, she is ambitious - doing an online course, and wanting to open a tea house in the future.
There are indeed pockets of third world living in our rich G7 country.
This is not much help, but one idea to trim home heating costs, or insurance, or anything for that matter, is to phone around and compare prices. For furnace oil, there is a range of around .06 cents a litre.
As of today, May 5th, here are local St. John's home heating oil prices:
(prices are for 1 litre of oil)
Five years ago you could buy furnace oil for about .43 cents a litre, give or take a few cents difference between dealers. In general, inflation may seem low, but this one essential product is hurting people badly. They need income increases too, to keep pace with vital living expenses.
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