Re: Citizen editorial Gas prices, tempers rising May 30, 2013
Citizen managing editor Neil Godbout bases one argument about gas gouging on the fact that lumber is the same price here as ??; then states gas prices (set by service station owners) is partially based on transportation costs.
B.C. consumers pay more for a vehicle made in Ontario than does a person living in Ontario. It's called freight, realistic freight; part of the logic of the free enterprise system you mention.
How can fuel from Husky Oil's refinery delivered to First Avenue sometimes costs more than fuel delivered to let's say 100 Mile House, if (as you hint) fuel delivery is a major pricing aspect. Where, in the logic of your explanation about free enterprise is this freight delivery discrepancy justified?
When prices go up everywhere (overnight) did every station get a delivery during the previous evening?
Not long ago crude oil prices would increase at the well head but the price at the service station remained the same until the supply of the cheaper crude had cleared the reserves. What happened to that fair pricing or is free enterprise another term for freedom to gouge. As one of Prince George's malcontents, I do not oppose realistic price increases or business profits but I detest (people) clouding the facts. Clouds support gougers and bullies. Get the facts straight first, then write editorials.
Because there is such a volume of uninformed writings and editorials (which serve only to confuse facts) we consumers are being forced to fight morality battles that a short time ago would never have surfaced.
Why place a large oil company sign at your service station? It has been argued that when a private-owed station sells gas at a lower price it is because they are selling a higher volume.
Placing an oil company's sign at your station makes you a member of a huge retail purchasing family and as a member of that group, your fuel price is based on the entire volume of fuel handled by that oil company. No private service station could ever match that volume.
Mark Twain once stated: "There are lies, damned lies and statistics." Today, we consumers say: "There are lies, damned lies and gas pricing."
Wall Street, banking rule changes, 2008's financial collapse demonstrates other reasons why consumers are justified not trusting big organizations. Today, consumers have too many battles to fight and that allows the gouger to win.
Divide and conquer.
Bill Barnes
Prince George
