Whenever gasoline prices peak in the summer, there are lots of loud complains about the price being too high; that this is somehow evidence of a "cartel" or "collusion" amongst oil companies, rather than the simple effect of supply and demand. Of course, no one (except me) complains when the price is TOO LOW.
Therefore, I take this opportunity to state clearly that retail gasoline prices are too low right now. For the past 2 weeks or so (I keep track) I have paid about 91 cents for a litre of regular unleaded at a major brand station. Why is this too low? Consider the math:
Price of crude oil at Edmonton, first half of Oct/07: approx. 44 cents/l ($440 per m3)
Basic refining costs (estimated, based on crack spreads): 5 cents/l
Transportation costs to Calgary (estimated pipeline): 2 cents/l
Federal excise tax: 10 cents/l
Alberta tax: 9 cents/l
Subtotal: 70 cents/l
GST on this portion: 4.2 cents/l
Total raw cost: 74.2 cents/l
So more than 74 cents is taken up with the basic cost of making raw gasoline and getting it to Calgary. Of course I have missed some significant costs, such as terminalling and trucking within the city, selling and administration costs (or G&A), marketing costs, the cost of the station, including all the electrical, wages, etc. of running a station, GST on all these other costs, and last but not least - an actual profit for the refiner, as well as the retailer.
Keep your tank topped up. And remember, if there was collusion, the prices would be much, much higher right now.
Sources: AB Facts on Gasoline (tax info)
Competition Bureau (crack spreads)
Manitoba Gov't Pricing report (Crude price)
Transportation (my experience in the industry)
Sunday, October 21, 2007
Tuesday, October 2, 2007
Canada's Tainted Blood Scandal
Making the news yesterday was the criminal trial in Ontario of 3 individuals and a corporation, charged in the Tainted Blood scandal of 20 years ago. In short, not only were they acquitted, but the judge went the extra distance of actually declaring that the charges were disproved!
Recap: Several public health officials and the Red Cross were implicated in distributing blood tainted with HIV and Hepatitis C in the late 1980's and early 1990's, when evidence was showing a problem in the screening of blood. Many hemophiliacs, as well as many individuals who received a transfusion, caught these horrible diseases through donated blood. The Krever Inquiry was formed to get to the bottom of why it happened (their report was over 1000 pages long, I believe), and these charges stemmed from those findings.
The Red Cross settled charges many years ago, paying a small fine and making a large donation to research schools to settle the issue. Compensation was also offered to some of the victims, but not all. Subsequent governments extended the compensation to everyone who got sick. Many have died, many others live with the fear of Hep C, my Mother included.
The net result is that not one person has been held responsible for this public health disaster. One would like to think that this could never happen again, but you can never really know. It is not vengeance that makes me say this, but rather the culture of escaping and passing blame that seems so prevalent. This reminds me that it has been with us for some time now, with no end in sight. Whether you are talking about blood, the Air India disaster, Alberta royalties, or other problems (too many to mention), think about this:
When was the last time you actually heard someone say "It happened on my watch, I am responsible?"
Recap: Several public health officials and the Red Cross were implicated in distributing blood tainted with HIV and Hepatitis C in the late 1980's and early 1990's, when evidence was showing a problem in the screening of blood. Many hemophiliacs, as well as many individuals who received a transfusion, caught these horrible diseases through donated blood. The Krever Inquiry was formed to get to the bottom of why it happened (their report was over 1000 pages long, I believe), and these charges stemmed from those findings.
The Red Cross settled charges many years ago, paying a small fine and making a large donation to research schools to settle the issue. Compensation was also offered to some of the victims, but not all. Subsequent governments extended the compensation to everyone who got sick. Many have died, many others live with the fear of Hep C, my Mother included.
The net result is that not one person has been held responsible for this public health disaster. One would like to think that this could never happen again, but you can never really know. It is not vengeance that makes me say this, but rather the culture of escaping and passing blame that seems so prevalent. This reminds me that it has been with us for some time now, with no end in sight. Whether you are talking about blood, the Air India disaster, Alberta royalties, or other problems (too many to mention), think about this:
When was the last time you actually heard someone say "It happened on my watch, I am responsible?"
Beware Drunk, Tattooed, Pierced, Idiot, Arsonist Bankrupts!
Really, what's not to like? I am frustrated at work right now due to someone whom I affectionately call the DT-PIAB. When you have someone who:
- Has been convicted of drunk driving, bad enough to have a serious suspension, and a breathalyzer installed into their ignition;
- Tattoos (see an earlier post);
- A tongue pierce (and likes to show people it);
- A person who calls themselves a developer, but can't code their way out of a paper bag;
- Who once burned down 45 acres of fields, a quonset hut, AND a house;
- And is just emerging from bankruptcy;
- All in One!
They might not be your best choice for an employee. I could be wrong...but I don't think so! Tattooed? Sadly, not the social stigma it used to be, I could live with that alone. Pierced? Questionable judgement, especially on the tongue, but maybe a youthful indiscretion. Idiot is somewhat subjective to others (but not to me!). But I definitely cannot abide with the drunk driving, bankruptcy, and arson.
All in all, a sad example of humanity, with no glimmer of reforming. If you must be pierced, how about a vasectomy or castration?
- Has been convicted of drunk driving, bad enough to have a serious suspension, and a breathalyzer installed into their ignition;
- Tattoos (see an earlier post);
- A tongue pierce (and likes to show people it);
- A person who calls themselves a developer, but can't code their way out of a paper bag;
- Who once burned down 45 acres of fields, a quonset hut, AND a house;
- And is just emerging from bankruptcy;
- All in One!
They might not be your best choice for an employee. I could be wrong...but I don't think so! Tattooed? Sadly, not the social stigma it used to be, I could live with that alone. Pierced? Questionable judgement, especially on the tongue, but maybe a youthful indiscretion. Idiot is somewhat subjective to others (but not to me!). But I definitely cannot abide with the drunk driving, bankruptcy, and arson.
All in all, a sad example of humanity, with no glimmer of reforming. If you must be pierced, how about a vasectomy or castration?
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