I have been so busy that the only people who came out ahead in all this is Premier Bernard Lord. I'll have to make up for lost blogs....lol
9 comments:
Anonymous
said...
Fixing gas prices and allowing the cpmpany that has the most to gain is all that is going one. Fowlie doesnot know anything except repeat what they want.
Oil and gas is refined here so we shold get the lowest price in NB not the case and has never been.
Time we play hard or ball. They say no competion, well we can say the same goes with Saint John water suppy , no competion and charge them the highest rate. Something is wrong and Lord should be accountable. Price of gas shold be no more then 96 or 98 cents and then outside areas can be charged transport cost not Saint John. We should receive dividends and that should be retroactive for at least years starting now. Honestly this is a small token for all the risks we have with our health and for the giouging because they have no competion. Regulations should of been there but the politicians woork for the billions not the average taxpayer.
Go and buy the following book: "Economics for Dummies"
Only then will you realize the concept of supply and demand of a worl commodity! There is no market to sell to in NB compared to the US/Ont and that is why gas is cheaper elswhere. The more demand and market competition the lower the price.
The above should read "economics for idiots" and realize that has nothing to do with it. Stick to rocket science.
If that were true then ALL the gas would go to Ontario. It doesn't, in fact Ontario doesn't even get gas from the New Brunswick refinery. Much of it goes to Maine, do you think Maine has millions of more people who pay more? That's just retarded.
Alberta has a huge population and process the gas right there and their gas prices are exactly the same as next door in Saskatchewan where they have no refinery and hardly any people.
Meanwhile, Venezuela has the cheapest gas in the world for its consumers. That's because supply and demand doesn't even enter it, it's all about monetary policy of the respective governments.
Go back to school and read "The Wealth of Nations" if you want to know how 'supply and demand' are supposed to work.
Population of Maine: 1,274,923 Population of NB: 757,100 Difference: 517,823
Registered veh in Maine(2000): aprox 1.1 Million (http://mainegov-images.informe.org/mdot/planning-documents/pdf/fact2002.pdf)
Registered Veh in NB (2004): 706,082 (http://www.gnb.ca/0276/vehicle/pdf/stat2003-04-e.pdf)
There are approx 394,000 more vehicules on the road in Maine consuming gasoline.
These are very conservative estimates but I think you can get the picture of where they have a higher demand. Also, you should note there is more competition in Maine than in NB. More competition means lower cost to consumers.
Remove the taxes we pay on gasoline in NB and the price difference isn't that huge when you factor in the higher demand.
Oh and least I forget, they also export to Mass, Conn, NH, VT, Ont and Que. You do the math!
2:16 PM I am not the one who left comments above. But you are theorize free market in reverse. Higher the demand more expensive the commoditiy. Only case you can make for NB is transportation costs. If supply is more than demand then price should be lower.
That proves the point that its not supply and demand. There are far more people in Connecticut than Maine, so why wouldn't it go there? If americans can pay more, then why would any be sold to New Brunswickers at all?
The reason is that it is an oligopoly, which is pretty much a monopoly. Irving supplies all the gas stations in New Brunswick, while Esso supplies it all to Nova Scotia. Those were deals that the oil companies made because it is more cost effective-it has nothing to do with supply and demand.
Just because you have more cars on the road means nothing about gas consumption. Vermonters have far fewer people than New hampshire, even less than New Brunswick, yet they use far more gas because they are a rural economy, just like much of New Brunswick is.
Gas is one of the most highly regulated commodities in the world, so its far from supply and demand economics. We pay more for gas development than most companies do via gas taxes that are then given as subsidies and development incentives, yet receive little in return.
That is bull supply and demand. Here it has always been no competion and the Irvings have gouged us for years; we pay more here then anywhere in NB. Now they don't have to travel far so what is the excuse. If it is $1 in Moncton surely here it should at least be two cents less. Common sense has never been highly rately with the Irvings. We know when the price of gas went down for the last few years we paid more here. They don't like to drop the price and no one demands it whether it is Liberal or Conservative. The wind blows the price goes up. There is a problem when they fix it at $112.4 and now all these extra reason why they can't be fair. Check the prices when the price per barrel is down we never go down.
9 comments:
Fixing gas prices and allowing the cpmpany that has the most to gain is all that is going one. Fowlie doesnot know anything except repeat what they want.
Oil and gas is refined here so we shold get the lowest price in NB not the case and has never been.
Time we play hard or ball. They say no competion, well we can say the same goes with Saint John water suppy , no competion and charge them the highest rate. Something is wrong and Lord should be accountable. Price of gas shold be no more then 96 or 98 cents and then outside areas can be charged transport cost not Saint John. We should receive dividends and that should be retroactive for at least years starting now. Honestly this is a small token for all the risks we have with our health and for the giouging because they have no competion. Regulations should of been there but the politicians woork for the billions not the average taxpayer.
Go and buy the following book: "Economics for Dummies"
Only then will you realize the concept of supply and demand of a worl commodity! There is no market to sell to in NB compared to the US/Ont and that is why gas is cheaper elswhere. The more demand and market competition the lower the price.
Bernie got you this time and got you real good with the help of Opposition. Fight that now.
The above should read "economics for idiots" and realize that has nothing to do with it. Stick to rocket science.
If that were true then ALL the gas would go to Ontario. It doesn't, in fact Ontario doesn't even get gas from the New Brunswick refinery. Much of it goes to Maine, do you think Maine has millions of more people who pay more? That's just retarded.
Alberta has a huge population and process the gas right there and their gas prices are exactly the same as next door in Saskatchewan where they have no refinery and hardly any people.
Meanwhile, Venezuela has the cheapest gas in the world for its consumers. That's because supply and demand doesn't even enter it, it's all about monetary policy of the respective governments.
Go back to school and read "The Wealth of Nations" if you want to know how 'supply and demand' are supposed to work.
Population of Maine: 1,274,923
Population of NB: 757,100
Difference: 517,823
Registered veh in Maine(2000): aprox 1.1 Million (http://mainegov-images.informe.org/mdot/planning-documents/pdf/fact2002.pdf)
Registered Veh in NB (2004): 706,082
(http://www.gnb.ca/0276/vehicle/pdf/stat2003-04-e.pdf)
There are approx 394,000 more vehicules on the road in Maine consuming gasoline.
These are very conservative estimates but I think you can get the picture of where they have a higher demand. Also, you should note there is more competition in Maine than in NB. More competition means lower cost to consumers.
Remove the taxes we pay on gasoline in NB and the price difference isn't that huge when you factor in the higher demand.
Oh and least I forget, they also export to Mass, Conn, NH, VT, Ont and Que. You do the math!
2:16 PM I am not the one who left comments above. But you are theorize free market in reverse. Higher the demand more expensive the commoditiy. Only case you can make for NB is transportation costs. If supply is more than demand then price should be lower.
That proves the point that its not supply and demand. There are far more people in Connecticut than Maine, so why wouldn't it go there? If americans can pay more, then why would any be sold to New Brunswickers at all?
The reason is that it is an oligopoly, which is pretty much a monopoly. Irving supplies all the gas stations in New Brunswick, while Esso supplies it all to Nova Scotia. Those were deals that the oil companies made because it is more cost effective-it has nothing to do with supply and demand.
Just because you have more cars on the road means nothing about gas consumption. Vermonters have far fewer people than New hampshire, even less than New Brunswick, yet they use far more gas because they are a rural economy, just like much of New Brunswick is.
Gas is one of the most highly regulated commodities in the world, so its far from supply and demand economics. We pay more for gas development than most companies do via gas taxes that are then given as subsidies and development incentives, yet receive little in return.
That is bull supply and demand. Here it has always been no competion and the Irvings have gouged us for years; we pay more here then anywhere in NB. Now they don't have to travel far so what is the excuse. If it is $1 in Moncton surely here it should at least be two cents less. Common sense has never been highly rately with the Irvings. We know when the price of gas went down for the last few years we paid more here. They don't like to drop the price and no one demands it whether it is Liberal or Conservative. The wind blows the price goes up. There is a problem when they fix it at $112.4 and now all these extra reason why they can't be fair. Check the prices when the price per barrel is down we never go down.
Agree. When it comes to gas prices in NB it is monopoly. Irvings make profits many times over.
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