The high price of regular gas invariable increases the price of higher octane fuel. Do most folk also know that the higher octane gas prices not only relect the increase in regular gas, but are also slammed by an increasing margin from the regular prices. For example; higher octane used to be about 10 cents/litre above regular gas. It is now 16/litre and going up all the time.

Where is the justification for this business decision?

Interestingly the US does not have such a big price gap...not even close. And given our environemntal concerns one might think that the use of higher octane gas would be made as price friendly as it is in the US.

is more then
Jim, 2011-05-12 14:16:46

As far as I know the gov't hasn't raised the tax on fuel several times in the last few years. I'm pretty sure the increased prices are due to greed. Didn't one of the oil company presidents just get a raise or bonus in the millions? Don't put all the blame on the taxman. Why is it that when international oil prices rise it takes overnight for the costs to reach the pumps but several weeks or often months for the gas to go down at the pumps when the prices drop?
Marty S, 2011-05-12 14:13:10

I would say since oil went down several dollars, and gas went up 8 cents a litre in Calgary to 1.29, yes.
Darryl, 2011-05-12 13:56:19

@Westwind64

You sound like Pierre Trudeau.

Trying to justify higher taxes and ridiculous gas prices by saying that Europeans pay more is a pure PET tactic of response.

Why should Canadians pay such a ridiculous price,after all we have the world's 2nd largest oil reserves-(more than all of Europe put together.

Why not compare our prices to the OPEC countries where gas sells far below what it costs in Canada?

We are according to the Fraser Institute the nation with the 2nd highest taxes in the world---for what?

We certainly have lost our claim to the world's best standard of living,so our high taxes and cost of living can't be maintaining our worldly position in that regard.
Brian, 2011-05-12 13:45:34

Today's high gas price is obviously the result of speculation.While this creates lots of Revenue the Government is not realy interested in reducing the price. We should cosider the advise not to buy gas from the two major supliers Petro Canada and ESSO from now to the end of the year.The price will go down while they will choke on their supplies.
John, 2011-05-12 13:19:31

I work for an Oil company, and I don't like it any more than the next guy, but I think the problem lies equally with both the government and the oil companies. First of all, "collusion" between the companies, I'm not sure exist. However, I would love to be that one producer that can explore for oil and refine it the cheapest, and still turn huge quarterly profits. It forces the other companies to charge the same at the pump, and that's why it looks like collusion. Just my opinion.

Secondly, how can the government charge a tax on a tax?? But we are Canadians, so we just grin and bear it. I for one would love to see some actual numbers on what the government makes on gasoline taxes alone. Does anyone but me ever wonder how many millions of litres of gasoline are sold in a day?? I think that number would enrage us even more. But, good luck getting those numbers.....until then, I'm off to get some gas.....hey, I got places to be.
Biggy, 2011-05-12 12:30:53

The conservative gov't choice means choosing for free enterprise, survival of the fit, death to the weak. If you want the government to be involved in regulating this, then you are not a conservative. If you believe that the Liberals or NDP are evil due to being socialist, you want this to run its course without government intervention.

DonaldE, 2011-05-12 12:04:47

Sad to see how little Canadians actually understand the market/economy. Even the Toronto Star gets it. Read David Olive: "Oil industry hates high prices as much as you" http://www.thestar.com/business/companies/article/989611--olive-oil-industry-hates-high-prices-as-much-as-you

Supply and demand. No conspiracy.
Westwind64, 2011-05-12 11:41:42

Gas prices are what they are and like all commodities it is and should be priced at what the market will bear. If it is deemed fair practice to regulate how much profit is is acceptable for the service station operator then we should, in all fairness, extend that philosophy to all aspects of canadian consumerism. We should regulate cattle prices to restrict what the farmer can sell his cattle for because the price of beef is a scandal, lets restrict how much profit car manufacturers can make because if you can offer six thousand dollar incentives to buy your vehicles you are obviously ripping off the canadian consumer, lets restrict how much profit the home builder can make because I don't like how much money they are making and so on. The idea that you will interfere with commerce can not be and will not be restricted to just one product or service - it has to be extended to cover everything. Just to be fair lets add 25% royalty to the farmers cows when they are sold and then add another 30% tax on to the finished product when it is sold as roasts - what is your beef costing now -it would be a scandal and we should investegate. A large portion of what you pay for gasoline is taxes that are added at every step of the production and refining process right through to the pump. The largest benefactor from the oil and gas business is the government. Lets level the playing field and add similar taxes to every product, after all the cow ate grass that grows free on the prairie and drank water that apparently belongs to the citizens so lets tax the crap out of it and then whine about the price. Oh, and lets not forget the farmed didn't have to build a two billion dollar processing facility to turn bossy into steak -better tax that too.
Bill Kimber, 2011-05-12 11:29:45

Considering that Europe's gas prices have been pretty much double what we pay for over the last 20 years, we have nothing to whine about. They use smaller cars, drive less, and use public transit, which is much better organized than in North America. We all pay lip service to being conscious of the ecology, but are hypocrites because many of us are single occupants in the car as we drive to work. We own large suv's and drive ski doos, atvs, jet skis, and motor boats for recreation. Europeans don't have that luxury and we could suck back and live a bit more responsibly. Supply and demand drives prices up and most people refuse to quit driving, which keeps demand steady.
Westwind64, 2011-05-12 10:58:38