Now that the price of crude oil has hit a new low of under $40 per barrel and we are still paying over $1.10 per litre, it seems to me that even normally apathetic people would start to realize that the price gouging for gas has hit levels we have never seen.
I understand that our governments are quite happy to see the consumer abuse as they collect their tax as a percentage, but what I don’t understand is why the oil companies are so loudly complaining that low crude prices are hurting their profitability. We are still paying roughly the same for gas as when oil was over $100 per barrel, so somebody is making a lot of money. I guess a logical questions would be, if the oil companies are not benefiting from the high price of gas, then where is all this money going?
I realize the price of crude oil is strictly an arbitrary and artificial number not based on any solid facts, but what really makes me angry is that when crude prices jump the price of gas follows closely, but when they bottom out this relationship disappears.
I have tried to get some explanation as to how the connection between crude prices and what we pay at the pump works. I have written letters to various government agencies and MPs but have never received a satisfactory answer. It seems that no one understands this ratio or doesn’t want to talk about it.
If anyone has any information or insight on this issues, perhaps you could write a letter to this paper. I’m sure it would be of interest to many people.